Correlation Between Xinjiang Baodi and China Mobile
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By analyzing existing cross correlation between Xinjiang Baodi Mining and China Mobile Limited, you can compare the effects of market volatilities on Xinjiang Baodi and China Mobile 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 Xinjiang Baodi with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and China Mobile.
Diversification Opportunities for Xinjiang Baodi and China Mobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and China is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited and Xinjiang Baodi 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 Xinjiang Baodi Mining are associated (or correlated) with China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and China Mobile go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and China Mobile
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.51 times less return on investment than China Mobile. In addition to that, Xinjiang Baodi is 1.62 times more volatile than China Mobile Limited. It trades about 0.02 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.05 per unit of volatility. If you would invest 7,630 in China Mobile Limited on October 11, 2024 and sell it today you would earn a total of 3,558 from holding China Mobile Limited or generate 46.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.7% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. China Mobile Limited
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| China Mobile Limited |
Xinjiang Baodi and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and China Mobile
The main advantage of trading using opposite Xinjiang Baodi and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| China Mobile vs. Tianjin Silvery Dragon | China Mobile vs. Ningbo Tip Rubber | China Mobile vs. Xinjiang Baodi Mining | China Mobile vs. Jiangnan Mould Plastic |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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