Correlation Between China Mobile and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both China Mobile and Singapore Telecommunicatio 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 China Mobile and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Mobile Limited and Singapore Telecommunications Limited, you can compare the effects of market volatilities on China Mobile and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Singapore Telecommunicatio.
Diversification Opportunities for China Mobile and Singapore Telecommunicatio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of China Mobile i.e., China Mobile and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between China Mobile and Singapore Telecommunicatio
If you would invest 219.00 in Singapore Telecommunications Limited on December 1, 2024 and sell it today you would earn a total of 21.00 from holding Singapore Telecommunications Limited or generate 9.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Mobile Limited vs. Singapore Telecommunications L
Performance |
Timeline |
China Mobile Limited |
Singapore Telecommunicatio |
China Mobile and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Mobile and Singapore Telecommunicatio
The main advantage of trading using opposite China Mobile and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.China Mobile vs. MAVEN WIRELESS SWEDEN | China Mobile vs. Ribbon Communications | China Mobile vs. Tower One Wireless | China Mobile vs. GEELY AUTOMOBILE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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