Correlation Between China Mobile and Hengerda New
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By analyzing existing cross correlation between China Mobile Limited and Hengerda New Materials, you can compare the effects of market volatilities on China Mobile and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Hengerda New.
Diversification Opportunities for China Mobile and Hengerda New
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Hengerda is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of China Mobile i.e., China Mobile and Hengerda New go up and down completely randomly.
Pair Corralation between China Mobile and Hengerda New
Assuming the 90 days trading horizon China Mobile Limited is expected to under-perform the Hengerda New. But the stock apears to be less risky and, when comparing its historical volatility, China Mobile Limited is 2.41 times less risky than Hengerda New. The stock trades about -0.24 of its potential returns per unit of risk. The Hengerda New Materials is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,810 in Hengerda New Materials on October 24, 2024 and sell it today you would lose (102.00) from holding Hengerda New Materials or give up 3.63% 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. Hengerda New Materials
Performance |
| Timeline |
| China Mobile Limited |
| Hengerda New Materials |
China Mobile and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Hengerda New
The main advantage of trading using opposite China Mobile and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| China Mobile vs. Giantec Semiconductor Corp | China Mobile vs. Ningbo Fujia Industrial | China Mobile vs. Shannon Semiconductor Technology | China Mobile vs. Guangdong Jingyi Metal |
| Hengerda New vs. Yankershop Food Co | Hengerda New vs. Suzhou Weizhixiang Food | Hengerda New vs. Xiangpiaopiao Food Co | Hengerda New vs. Youyou Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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