Correlation Between China Mobile and Hainan Airlines
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By analyzing existing cross correlation between China Mobile Limited and Hainan Airlines Co, you can compare the effects of market volatilities on China Mobile and Hainan Airlines 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 Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Hainan Airlines.
Diversification Opportunities for China Mobile and Hainan Airlines
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Hainan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines 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 Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of China Mobile i.e., China Mobile and Hainan Airlines go up and down completely randomly.
Pair Corralation between China Mobile and Hainan Airlines
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.59 times more return on investment than Hainan Airlines. However, China Mobile Limited is 1.7 times less risky than Hainan Airlines. It trades about 0.1 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.04 per unit of risk. If you would invest 10,658 in China Mobile Limited on October 12, 2024 and sell it today you would earn a total of 347.00 from holding China Mobile Limited or generate 3.26% 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. Hainan Airlines Co
Performance |
| Timeline |
| China Mobile Limited |
| Hainan Airlines |
China Mobile and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Hainan Airlines
The main advantage of trading using opposite China Mobile and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Hainan Airlines 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 Airlines will offset losses from the drop in Hainan Airlines' long position.| China Mobile vs. Panda Financial Holding | China Mobile vs. Zhongyin Babi Food | China Mobile vs. Ping An Insurance | China Mobile vs. Unisplendour Corp |
| Hainan Airlines vs. BYD Co Ltd | Hainan Airlines vs. China Mobile Limited | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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