Correlation Between China Mobile and Guangzhou Haozhi
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By analyzing existing cross correlation between China Mobile Limited and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on China Mobile and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Guangzhou Haozhi.
Diversification Opportunities for China Mobile and Guangzhou Haozhi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of China Mobile i.e., China Mobile and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between China Mobile and Guangzhou Haozhi
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 4.12 times less risky than Guangzhou Haozhi. The stock trades about -0.07 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,468 in Guangzhou Haozhi Industrial on September 13, 2024 and sell it today you would earn a total of 1,042 from holding Guangzhou Haozhi Industrial or generate 70.98% 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. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| China Mobile Limited |
| Guangzhou Haozhi Ind |
China Mobile and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Guangzhou Haozhi
The main advantage of trading using opposite China Mobile and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| China Mobile vs. Industrial and Commercial | China Mobile vs. China Construction Bank | China Mobile vs. Agricultural Bank of | China Mobile vs. Bank of China |
| Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. Kweichow Moutai Co | Guangzhou Haozhi vs. Agricultural Bank of | Guangzhou Haozhi vs. China Mobile Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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