Correlation Between Hainan Haiqi and China Mobile
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By analyzing existing cross correlation between Hainan Haiqi Transportation and China Mobile Limited, you can compare the effects of market volatilities on Hainan Haiqi and China Mobile 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 Hainan Haiqi with a short position of China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and China Mobile.
Diversification Opportunities for Hainan Haiqi and China Mobile
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and China is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited and Hainan Haiqi 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 Hainan Haiqi Transportation are associated (or correlated) with China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and China Mobile go up and down completely randomly.
Pair Corralation between Hainan Haiqi and China Mobile
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the China Mobile. In addition to that, Hainan Haiqi is 1.62 times more volatile than China Mobile Limited. It trades about -0.58 of its total potential returns per unit of risk. China Mobile Limited is currently generating about -0.11 per unit of volatility. If you would invest 11,215 in China Mobile Limited on October 16, 2024 and sell it today you would lose (375.00) from holding China Mobile Limited or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. China Mobile Limited
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| China Mobile Limited |
Hainan Haiqi and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and China Mobile
The main advantage of trading using opposite Hainan Haiqi and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Hainan Haiqi vs. Zhengping RoadBridge Constr | Hainan Haiqi vs. China Eastern Airlines | Hainan Haiqi vs. Healthcare Co | Hainan Haiqi vs. RoadMain T Co |
| China Mobile vs. Shuhua Sports Co | China Mobile vs. Hainan Haiqi Transportation | China Mobile vs. Sportsoul Co Ltd | China Mobile vs. Shandong Longquan Pipeline |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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