Correlation Between Industrial Bank and China Mobile
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By analyzing existing cross correlation between Industrial Bank Co and China Mobile Limited, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and China Mobile.
Diversification Opportunities for Industrial Bank and China Mobile
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co 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 Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and China Mobile go up and down completely randomly.
Pair Corralation between Industrial Bank and China Mobile
Assuming the 90 days trading horizon Industrial Bank Co is expected to under-perform the China Mobile. In addition to that, Industrial Bank is 1.18 times more volatile than China Mobile Limited. It trades about -0.18 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.12 per unit of volatility. If you would invest 10,229 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 313.00 from holding China Mobile Limited or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. China Mobile Limited
Performance |
| Timeline |
| Industrial Bank |
| China Mobile Limited |
Industrial Bank and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and China Mobile
The main advantage of trading using opposite Industrial Bank and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Bomin Electronics Co | Industrial Bank vs. Zhangjiagang Freetrade Science | Industrial Bank vs. Nantong Haixing Electronics | Industrial Bank vs. TongFu Microelectronics Co |
| China Mobile vs. Industrial and Commercial | China Mobile vs. Agricultural Bank of | China Mobile vs. China Construction Bank | China Mobile vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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