Correlation Between China Mobile and Lushang Property
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By analyzing existing cross correlation between China Mobile Limited and Lushang Property Co, you can compare the effects of market volatilities on China Mobile and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Lushang Property.
Diversification Opportunities for China Mobile and Lushang Property
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Lushang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of China Mobile i.e., China Mobile and Lushang Property go up and down completely randomly.
Pair Corralation between China Mobile and Lushang Property
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.51 times more return on investment than Lushang Property. However, China Mobile Limited is 1.96 times less risky than Lushang Property. It trades about 0.04 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.03 per unit of risk. If you would invest 9,948 in China Mobile Limited on September 24, 2024 and sell it today you would earn a total of 1,192 from holding China Mobile Limited or generate 11.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Mobile Limited vs. Lushang Property Co
Performance |
Timeline |
China Mobile Limited |
Lushang Property |
China Mobile and Lushang Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Mobile and Lushang Property
The main advantage of trading using opposite China Mobile and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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