Correlation Between China Mobile and Haima Automobile
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By analyzing existing cross correlation between China Mobile Limited and Haima Automobile Group, you can compare the effects of market volatilities on China Mobile and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Haima Automobile.
Diversification Opportunities for China Mobile and Haima Automobile
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Haima is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of China Mobile i.e., China Mobile and Haima Automobile go up and down completely randomly.
Pair Corralation between China Mobile and Haima Automobile
Assuming the 90 days trading horizon China Mobile is expected to generate 1.18 times less return on investment than Haima Automobile. But when comparing it to its historical volatility, China Mobile Limited is 2.91 times less risky than Haima Automobile. It trades about 0.04 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Haima Automobile Group on October 18, 2024 and sell it today you would lose (13.00) from holding Haima Automobile Group or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Haima Automobile Group
Performance |
| Timeline |
| China Mobile Limited |
| Haima Automobile |
China Mobile and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Haima Automobile
The main advantage of trading using opposite China Mobile and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| China Mobile vs. Hubei Forbon Technology | China Mobile vs. Eit Environmental Development | China Mobile vs. Fujian Nanwang Environment | China Mobile vs. 360 Security Technology |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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