Correlation Between China Mobile and Hainan Airlines
Specify exactly 2 symbols:
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
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Hainan is 0.11. 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 is expected to generate 2.66 times less return on investment than Hainan Airlines. But when comparing it to its historical volatility, China Mobile Limited is 3.39 times less risky than Hainan Airlines. It trades about 0.11 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Hainan Airlines Co on October 31, 2024 and sell it today you would earn a total of 25.00 from holding Hainan Airlines Co or generate 18.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
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. Hygon Information Technology | ||
China Mobile vs. Sinofibers Technology Co | ||
China Mobile vs. Hangzhou Gisway Information | ||
China Mobile vs. Emdoor Information Co |
Hainan Airlines vs. Tsingtao Brewery Co | ||
Hainan Airlines vs. Jahen Household Products | ||
Hainan Airlines vs. Beijing Jiaman Dress | ||
Hainan Airlines vs. JCHX Mining Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |