Correlation Between China Mobile and Hunan Tyen
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By analyzing existing cross correlation between China Mobile Limited and Hunan Tyen Machinery, you can compare the effects of market volatilities on China Mobile and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Hunan Tyen.
Diversification Opportunities for China Mobile and Hunan Tyen
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Hunan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of China Mobile i.e., China Mobile and Hunan Tyen go up and down completely randomly.
Pair Corralation between China Mobile and Hunan Tyen
Assuming the 90 days trading horizon China Mobile is expected to generate 2.65 times less return on investment than Hunan Tyen. But when comparing it to its historical volatility, China Mobile Limited is 1.92 times less risky than Hunan Tyen. It trades about 0.02 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 481.00 in Hunan Tyen Machinery on December 1, 2024 and sell it today you would earn a total of 113.00 from holding Hunan Tyen Machinery or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Hunan Tyen Machinery
Performance |
| Timeline |
| China Mobile Limited |
| Hunan Tyen Machinery |
China Mobile and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Hunan Tyen
The main advantage of trading using opposite China Mobile and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| China Mobile vs. Shuhua Sports Co | China Mobile vs. Highbroad Advanced Material | China Mobile vs. Unisplendour Corp | China Mobile vs. Zhongshan Broad Ocean Motor |
| Hunan Tyen vs. Guangzhou Haozhi Industrial | Hunan Tyen vs. Rongcheer Industrial Technology | Hunan Tyen vs. Bosera CMSK Industrial | Hunan Tyen vs. Jiangsu Financial Leasing |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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