Correlation Between Hunan Investment and China Mobile
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By analyzing existing cross correlation between Hunan Investment Group and China Mobile Limited, you can compare the effects of market volatilities on Hunan Investment and China Mobile 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 Hunan Investment with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and China Mobile.
Diversification Opportunities for Hunan Investment and China Mobile
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Hunan Investment i.e., Hunan Investment and China Mobile go up and down completely randomly.
Pair Corralation between Hunan Investment and China Mobile
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 2.97 times more return on investment than China Mobile. However, Hunan Investment is 2.97 times more volatile than China Mobile Limited. It trades about 0.33 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.06 per unit of risk. If you would invest 513.00 in Hunan Investment Group on August 28, 2024 and sell it today you would earn a total of 126.00 from holding Hunan Investment Group or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. China Mobile Limited
Performance |
| Timeline |
| Hunan Investment |
| China Mobile Limited |
Hunan Investment and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and China Mobile
The main advantage of trading using opposite Hunan Investment and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Shenzhen Mindray Bio Medical | Hunan Investment vs. G bits Network Technology | Hunan Investment vs. Shenzhen Transsion Holdings |
| China Mobile vs. Chongqing Shunbo Aluminum | China Mobile vs. Haima Automobile Group | China Mobile vs. Changchun Faway Automobile | China Mobile vs. Sunwave Communications Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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