Correlation Between China Mobile and Liaoning Chengda
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By analyzing existing cross correlation between China Mobile Limited and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on China Mobile and Liaoning Chengda and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Mobile with a short position of Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Liaoning Chengda.
Diversification Opportunities for China Mobile and Liaoning Chengda
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Liaoning is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio and China Mobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Mobile Limited are associated (or correlated) with Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of China Mobile i.e., China Mobile and Liaoning Chengda go up and down completely randomly.
Pair Corralation between China Mobile and Liaoning Chengda
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.74 times more return on investment than Liaoning Chengda. However, China Mobile Limited is 1.36 times less risky than Liaoning Chengda. It trades about 0.14 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 10,282 in China Mobile Limited on September 3, 2024 and sell it today you would earn a total of 356.00 from holding China Mobile Limited or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| China Mobile Limited |
| Liaoning Chengda Bio |
China Mobile and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Liaoning Chengda
The main advantage of trading using opposite China Mobile and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Liaoning Chengda can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| Liaoning Chengda vs. Chengdu Kanghua Biological | Liaoning Chengda vs. Beijing Wantai Biological | Liaoning Chengda vs. Suzhou Novoprotein Scientific | Liaoning Chengda vs. Aluminum Corp of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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