Correlation Between China Mobile and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mobile Limited and Metro Investment Development, you can compare the effects of market volatilities on China Mobile and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Metro Investment.
Diversification Opportunities for China Mobile and Metro Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Metro is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of China Mobile i.e., China Mobile and Metro Investment go up and down completely randomly.
Pair Corralation between China Mobile and Metro Investment
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.48 times more return on investment than Metro Investment. However, China Mobile Limited is 2.1 times less risky than Metro Investment. It trades about 0.29 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.05 per unit of risk. If you would invest 10,370 in China Mobile Limited on September 24, 2024 and sell it today you would earn a total of 770.00 from holding China Mobile Limited or generate 7.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Mobile Limited vs. Metro Investment Development
Performance |
Timeline |
China Mobile Limited |
Metro Investment Dev |
China Mobile and Metro Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Mobile and Metro Investment
The main advantage of trading using opposite China Mobile and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment'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 |
Metro Investment vs. PetroChina Co Ltd | Metro Investment vs. China Mobile Limited | Metro Investment vs. CNOOC Limited | Metro Investment vs. Ping An Insurance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |