Correlation Between HUANLEJIA Food and China Mobile
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By analyzing existing cross correlation between HUANLEJIA Food Group and China Mobile Limited, you can compare the effects of market volatilities on HUANLEJIA Food 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 HUANLEJIA Food with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUANLEJIA Food and China Mobile.
Diversification Opportunities for HUANLEJIA Food and China Mobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUANLEJIA and China is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUANLEJIA Food 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 HUANLEJIA Food 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 HUANLEJIA Food 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 HUANLEJIA Food i.e., HUANLEJIA Food and China Mobile go up and down completely randomly.
Pair Corralation between HUANLEJIA Food and China Mobile
Assuming the 90 days trading horizon HUANLEJIA Food Group is expected to generate 6.41 times more return on investment than China Mobile. However, HUANLEJIA Food is 6.41 times more volatile than China Mobile Limited. It trades about 0.16 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.17 per unit of risk. If you would invest 1,409 in HUANLEJIA Food Group on September 12, 2024 and sell it today you would earn a total of 335.00 from holding HUANLEJIA Food Group or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUANLEJIA Food Group vs. China Mobile Limited
Performance |
| Timeline |
| HUANLEJIA Food Group |
| China Mobile Limited |
HUANLEJIA Food and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUANLEJIA Food and China Mobile
The main advantage of trading using opposite HUANLEJIA Food and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUANLEJIA Food 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.| HUANLEJIA Food vs. China Petroleum Chemical | HUANLEJIA Food vs. PetroChina Co Ltd | HUANLEJIA Food vs. China State Construction | HUANLEJIA Food vs. China Railway Group |
| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Shenzhen Mindray Bio Medical | China Mobile vs. G bits Network Technology | China Mobile vs. Beijing Roborock Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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