Correlation Between Ningbo Construction and China Mobile
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By analyzing existing cross correlation between Ningbo Construction Co and China Mobile Limited, you can compare the effects of market volatilities on Ningbo Construction 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 Ningbo Construction with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and China Mobile.
Diversification Opportunities for Ningbo Construction and China Mobile
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and China is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction 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 Ningbo Construction 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 Ningbo Construction 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 Ningbo Construction i.e., Ningbo Construction and China Mobile go up and down completely randomly.
Pair Corralation between Ningbo Construction and China Mobile
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 2.12 times more return on investment than China Mobile. However, Ningbo Construction is 2.12 times more volatile than China Mobile Limited. It trades about 0.03 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.04 per unit of risk. If you would invest 367.00 in Ningbo Construction Co on October 18, 2024 and sell it today you would earn a total of 47.00 from holding Ningbo Construction Co or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ningbo Construction Co vs. China Mobile Limited
Performance |
| Timeline |
| Ningbo Construction |
| China Mobile Limited |
Ningbo Construction and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and China Mobile
The main advantage of trading using opposite Ningbo Construction and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction 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.| Ningbo Construction vs. Wuhan Yangtze Communication | Ningbo Construction vs. Tongyu Communication | Ningbo Construction vs. Easyhome New Retail | Ningbo Construction vs. Guangxi Wuzhou Communications |
| China Mobile vs. Hubei Forbon Technology | China Mobile vs. Eit Environmental Development | China Mobile vs. Fujian Nanwang Environment | China Mobile vs. 360 Security Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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