Correlation Between Datang HuaYin and China Mobile
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By analyzing existing cross correlation between Datang HuaYin Electric and China Mobile Limited, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and China Mobile.
Diversification Opportunities for Datang HuaYin and China Mobile
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Datang and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric 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 Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and China Mobile go up and down completely randomly.
Pair Corralation between Datang HuaYin and China Mobile
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the China Mobile. In addition to that, Datang HuaYin is 1.83 times more volatile than China Mobile Limited. It trades about -0.07 of its total potential returns per unit of risk. China Mobile Limited is currently generating about 0.12 per unit of volatility. If you would invest 10,229 in China Mobile Limited on August 29, 2024 and sell it today you would earn a total of 313.00 from holding China Mobile Limited or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. China Mobile Limited
Performance |
| Timeline |
| Datang HuaYin Electric |
| China Mobile Limited |
Datang HuaYin and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and China Mobile
The main advantage of trading using opposite Datang HuaYin and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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