Correlation Between China Mobile and Hunan Investment
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By analyzing existing cross correlation between China Mobile Limited and Hunan Investment Group, you can compare the effects of market volatilities on China Mobile and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Hunan Investment.
Diversification Opportunities for China Mobile and Hunan Investment
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Hunan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of China Mobile i.e., China Mobile and Hunan Investment go up and down completely randomly.
Pair Corralation between China Mobile and Hunan Investment
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 1.17 times more return on investment than Hunan Investment. However, China Mobile is 1.17 times more volatile than Hunan Investment Group. It trades about 0.03 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.04 per unit of risk. If you would invest 11,097 in China Mobile Limited on November 27, 2024 and sell it today you would earn a total of 50.00 from holding China Mobile Limited or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Hunan Investment Group
Performance |
| Timeline |
| China Mobile Limited |
| Hunan Investment |
China Mobile and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Hunan Investment
The main advantage of trading using opposite China Mobile and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| China Mobile vs. Caihong Display Devices | China Mobile vs. Beijing Kingsoft Office | China Mobile vs. Suofeiya Home Collection | China Mobile vs. Hua Hong Semiconductor |
| Hunan Investment vs. CareRay Digital Medical | Hunan Investment vs. Heren Health Co | Hunan Investment vs. Winner Medical Co | Hunan Investment vs. Andon Health 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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