Correlation Between CNVISION MEDIA and China Mobile
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and China Mobile at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CNVISION MEDIA and China Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and China Mobile Limited, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and China Mobile.
Diversification Opportunities for CNVISION MEDIA and China Mobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNVISION and China is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA i.e., CNVISION MEDIA and China Mobile go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and China Mobile
If you would invest 856.00 in China Mobile Limited on September 5, 2024 and sell it today you would earn a total of 0.00 from holding China Mobile Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
CNVISION MEDIA vs. China Mobile Limited
Performance |
| Timeline |
| CNVISION MEDIA |
| China Mobile Limited |
CNVISION MEDIA and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and China Mobile
The main advantage of trading using opposite CNVISION MEDIA and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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.| CNVISION MEDIA vs. TOTAL GABON | CNVISION MEDIA vs. Walgreens Boots Alliance | CNVISION MEDIA vs. Peak Resources Limited |
| China Mobile vs. CNVISION MEDIA | China Mobile vs. Seven West Media | China Mobile vs. ATRESMEDIA | China Mobile vs. Alaska Air Group |
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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