Correlation Between China Mobile and Perusahaan Perseroan
Can any of the company-specific risk be diversified away by investing in both China Mobile and Perusahaan Perseroan 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 China Mobile and Perusahaan Perseroan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Mobile Limited and Perusahaan Perseroan PT, you can compare the effects of market volatilities on China Mobile and Perusahaan Perseroan 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 Perusahaan Perseroan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Perusahaan Perseroan.
Diversification Opportunities for China Mobile and Perusahaan Perseroan
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Perusahaan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Perusahaan Perseroan PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Perseroan 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 Perusahaan Perseroan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Perseroan has no effect on the direction of China Mobile i.e., China Mobile and Perusahaan Perseroan go up and down completely randomly.
Pair Corralation between China Mobile and Perusahaan Perseroan
If you would invest 1,550 in Perusahaan Perseroan PT on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Perusahaan Perseroan PT or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Mobile Limited vs. Perusahaan Perseroan PT
Performance |
| Timeline |
| China Mobile Limited |
| Perusahaan Perseroan |
China Mobile and Perusahaan Perseroan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Perusahaan Perseroan
The main advantage of trading using opposite China Mobile and Perusahaan Perseroan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Perusahaan Perseroan 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 Perusahaan Perseroan will offset losses from the drop in Perusahaan Perseroan's long position.| China Mobile vs. Superior Plus Corp | China Mobile vs. SIVERS SEMICONDUCTORS AB | China Mobile vs. Norsk Hydro ASA | China Mobile vs. Reliance Steel Aluminum |
| Perusahaan Perseroan vs. Superior Plus Corp | Perusahaan Perseroan vs. SIVERS SEMICONDUCTORS AB | Perusahaan Perseroan vs. Norsk Hydro ASA | Perusahaan Perseroan vs. Reliance Steel Aluminum |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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