Correlation Between Hangzhou Gisway and China Mobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Gisway Information and China Mobile Limited, you can compare the effects of market volatilities on Hangzhou Gisway 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 Hangzhou Gisway with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and China Mobile.
Diversification Opportunities for Hangzhou Gisway and China Mobile
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information 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 Hangzhou Gisway 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 Hangzhou Gisway Information 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 Hangzhou Gisway i.e., Hangzhou Gisway and China Mobile go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and China Mobile
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 2.3 times more return on investment than China Mobile. However, Hangzhou Gisway is 2.3 times more volatile than China Mobile Limited. It trades about 0.02 of its potential returns per unit of risk. China Mobile Limited is currently generating about -0.15 per unit of risk. If you would invest 3,200 in Hangzhou Gisway Information on November 8, 2024 and sell it today you would earn a total of 5.00 from holding Hangzhou Gisway Information or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. China Mobile Limited
Performance |
| Timeline |
| Hangzhou Gisway Info |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| China Mobile Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Hangzhou Gisway and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and China Mobile
The main advantage of trading using opposite Hangzhou Gisway and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway 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.The idea behind Hangzhou Gisway Information and China Mobile Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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