Correlation Between THRACE PLASTICS and China Mobile
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS 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 THRACE PLASTICS and China Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and China Mobile Limited, you can compare the effects of market volatilities on THRACE PLASTICS 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 THRACE PLASTICS with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and China Mobile.
Diversification Opportunities for THRACE PLASTICS and China Mobile
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between THRACE and China is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS i.e., THRACE PLASTICS and China Mobile go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and China Mobile
If you would invest 387.00 in THRACE PLASTICS on November 1, 2024 and sell it today you would earn a total of 14.00 from holding THRACE PLASTICS or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THRACE PLASTICS vs. China Mobile Limited
Performance |
| Timeline |
| THRACE PLASTICS |
| China Mobile Limited |
THRACE PLASTICS and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and China Mobile
The main advantage of trading using opposite THRACE PLASTICS and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS 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.| THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc |
| China Mobile vs. AEON METALS LTD | China Mobile vs. CanSino Biologics | China Mobile vs. American Eagle Outfitters | China Mobile vs. Check Point Software |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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