Correlation Between China Mobile and Ming Yang
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By analyzing existing cross correlation between China Mobile Limited and Ming Yang Smart, you can compare the effects of market volatilities on China Mobile and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Ming Yang.
Diversification Opportunities for China Mobile and Ming Yang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Ming is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of China Mobile i.e., China Mobile and Ming Yang go up and down completely randomly.
Pair Corralation between China Mobile and Ming Yang
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.57 times more return on investment than Ming Yang. However, China Mobile Limited is 1.76 times less risky than Ming Yang. It trades about -0.12 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.11 per unit of risk. If you would invest 11,636 in China Mobile Limited on December 30, 2024 and sell it today you would lose (996.00) from holding China Mobile Limited or give up 8.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Mobile Limited vs. Ming Yang Smart
Performance |
Timeline |
China Mobile Limited |
Ming Yang Smart |
China Mobile and Ming Yang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Mobile and Ming Yang
The main advantage of trading using opposite China Mobile and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.China Mobile vs. Uroica Mining Safety | China Mobile vs. Jiangxi Copper Co | China Mobile vs. JCHX Mining Management | China Mobile vs. Guangdong Wens Foodstuff |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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