Correlation Between Mobilezone Holding and China Merchants
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and China Merchants 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 Mobilezone Holding and China Merchants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobilezone Holding AG and China Merchants Bank, you can compare the effects of market volatilities on Mobilezone Holding and China Merchants 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 Mobilezone Holding with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and China Merchants.
Diversification Opportunities for Mobilezone Holding and China Merchants
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobilezone and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank and Mobilezone Holding 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 Mobilezone Holding AG are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and China Merchants go up and down completely randomly.
Pair Corralation between Mobilezone Holding and China Merchants
If you would invest 478.00 in China Merchants Bank on October 23, 2024 and sell it today you would earn a total of 32.00 from holding China Merchants Bank or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Mobilezone Holding AG vs. China Merchants Bank
Performance |
| Timeline |
| Mobilezone Holding |
| China Merchants Bank |
Mobilezone Holding and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and China Merchants
The main advantage of trading using opposite Mobilezone Holding and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, China Merchants 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 Merchants will offset losses from the drop in China Merchants' long position.| Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc |
| China Merchants vs. Entravision Communications | China Merchants vs. Align Technology | China Merchants vs. Mobilezone Holding AG | China Merchants vs. SMA Solar 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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