Correlation Between China Mobile and Hainan HNA
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By analyzing existing cross correlation between China Mobile Limited and Hainan HNA Infrastructure, you can compare the effects of market volatilities on China Mobile and Hainan HNA 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 Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Hainan HNA.
Diversification Opportunities for China Mobile and Hainan HNA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Hainan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure 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 Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of China Mobile i.e., China Mobile and Hainan HNA go up and down completely randomly.
Pair Corralation between China Mobile and Hainan HNA
Assuming the 90 days trading horizon China Mobile is expected to generate 2.34 times less return on investment than Hainan HNA. But when comparing it to its historical volatility, China Mobile Limited is 1.73 times less risky than Hainan HNA. It trades about 0.05 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Hainan HNA Infrastructure on September 27, 2024 and sell it today you would earn a total of 57.00 from holding Hainan HNA Infrastructure or generate 17.7% 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. Hainan HNA Infrastructure
Performance |
| Timeline |
| China Mobile Limited |
| Hainan HNA Infrastructure |
China Mobile and Hainan HNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Hainan HNA
The main advantage of trading using opposite China Mobile and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.| China Mobile vs. Chengdu Kanghua Biological | China Mobile vs. Beijing Wantai Biological | China Mobile vs. Suzhou Novoprotein Scientific | China Mobile vs. COL Digital Publishing |
| Hainan HNA vs. PetroChina Co Ltd | Hainan HNA vs. China Mobile Limited | Hainan HNA vs. CNOOC Limited | Hainan HNA vs. Ping An Insurance |
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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