Correlation Between China Mobile and Eros STX
Can any of the company-specific risk be diversified away by investing in both China Mobile and Eros STX 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 Eros STX 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 Eros STX Global, you can compare the effects of market volatilities on China Mobile and Eros STX 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 Eros STX. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Eros STX.
Diversification Opportunities for China Mobile and Eros STX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Eros is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Eros STX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros STX Global 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 Eros STX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros STX Global has no effect on the direction of China Mobile i.e., China Mobile and Eros STX go up and down completely randomly.
Pair Corralation between China Mobile and Eros STX
If you would invest (100.00) in Eros STX Global on January 21, 2024 and sell it today you would earn a total of 100.00 from holding Eros STX Global or generate -100.0% 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. Eros STX Global
Performance |
| Timeline |
| China Mobile Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Mobile and Eros STX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Eros STX
The main advantage of trading using opposite China Mobile and Eros STX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Eros STX 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 Eros STX will offset losses from the drop in Eros STX's long position.| China Mobile vs. Willamette Valley Vineyards | China Mobile vs. The Coca Cola | China Mobile vs. Helmerich and Payne | China Mobile vs. Precision Drilling |
| Eros STX vs. IFAN Financial | Eros STX vs. Assurant | Eros STX vs. Kinsale Capital Group | Eros STX vs. Tandy Leather Factory |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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