Correlation Between China Mobile and HUANLEJIA Food
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By analyzing existing cross correlation between China Mobile Limited and HUANLEJIA Food Group, you can compare the effects of market volatilities on China Mobile and HUANLEJIA Food 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 HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and HUANLEJIA Food.
Diversification Opportunities for China Mobile and HUANLEJIA Food
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and HUANLEJIA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and HUANLEJIA Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUANLEJIA Food Group 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 HUANLEJIA Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUANLEJIA Food Group has no effect on the direction of China Mobile i.e., China Mobile and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between China Mobile and HUANLEJIA Food
Assuming the 90 days trading horizon China Mobile is expected to generate 6.08 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, China Mobile Limited is 6.41 times less risky than HUANLEJIA Food. It trades about 0.17 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,409 in HUANLEJIA Food Group on September 12, 2024 and sell it today you would earn a total of 335.00 from holding HUANLEJIA Food Group or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. HUANLEJIA Food Group
Performance |
| Timeline |
| China Mobile Limited |
| HUANLEJIA Food Group |
China Mobile and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and HUANLEJIA Food
The main advantage of trading using opposite China Mobile and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, HUANLEJIA Food 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 HUANLEJIA Food will offset losses from the drop in HUANLEJIA Food's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. Shenzhen Mindray Bio Medical | China Mobile vs. G bits Network Technology | China Mobile vs. Beijing Roborock Technology |
| HUANLEJIA Food vs. China Petroleum Chemical | HUANLEJIA Food vs. PetroChina Co Ltd | HUANLEJIA Food vs. China State Construction | HUANLEJIA Food vs. China Railway Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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