Correlation Between ATRESMEDIA and China Mobile
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA 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 ATRESMEDIA and China Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and China Mobile Limited, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and China Mobile.
Diversification Opportunities for ATRESMEDIA and China Mobile
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRESMEDIA and China is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and China Mobile go up and down completely randomly.
Pair Corralation between ATRESMEDIA and China Mobile
If you would invest 437.00 in ATRESMEDIA on September 5, 2024 and sell it today you would earn a total of 15.00 from holding ATRESMEDIA or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
ATRESMEDIA vs. China Mobile Limited
Performance |
| Timeline |
| ATRESMEDIA |
| China Mobile Limited |
ATRESMEDIA and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and China Mobile
The main advantage of trading using opposite ATRESMEDIA and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. TOTAL GABON | ATRESMEDIA vs. Walgreens Boots Alliance | ATRESMEDIA 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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