Correlation Between China Mobile and HaiXin Foods
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By analyzing existing cross correlation between China Mobile Limited and HaiXin Foods Co, you can compare the effects of market volatilities on China Mobile and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and HaiXin Foods.
Diversification Opportunities for China Mobile and HaiXin Foods
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and HaiXin is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of China Mobile i.e., China Mobile and HaiXin Foods go up and down completely randomly.
Pair Corralation between China Mobile and HaiXin Foods
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.6 times more return on investment than HaiXin Foods. However, China Mobile Limited is 1.67 times less risky than HaiXin Foods. It trades about 0.06 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.01 per unit of risk. If you would invest 7,302 in China Mobile Limited on October 9, 2024 and sell it today you would earn a total of 3,813 from holding China Mobile Limited or generate 52.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. HaiXin Foods Co
Performance |
| Timeline |
| China Mobile Limited |
| HaiXin Foods |
China Mobile and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and HaiXin Foods
The main advantage of trading using opposite China Mobile and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| China Mobile vs. Qumei Furniture Group | China Mobile vs. Fiberhome Telecommunication Technologies | China Mobile vs. Shenzhen MYS Environmental | China Mobile vs. Oppein Home Group |
| HaiXin Foods vs. Industrial and Commercial | HaiXin Foods vs. Agricultural Bank of | HaiXin Foods vs. China Construction Bank | HaiXin Foods vs. Bank of China |
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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