Correlation Between Citic Offshore and Hainan Airlines
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By analyzing existing cross correlation between Citic Offshore Helicopter and Hainan Airlines Co, you can compare the effects of market volatilities on Citic Offshore 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 Citic Offshore with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Hainan Airlines.
Diversification Opportunities for Citic Offshore and Hainan Airlines
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citic and Hainan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Citic Offshore 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 Citic Offshore Helicopter 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 Citic Offshore i.e., Citic Offshore and Hainan Airlines go up and down completely randomly.
Pair Corralation between Citic Offshore and Hainan Airlines
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to under-perform the Hainan Airlines. In addition to that, Citic Offshore is 1.24 times more volatile than Hainan Airlines Co. It trades about -0.01 of its total potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.11 per unit of volatility. If you would invest 31.00 in Hainan Airlines Co on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Hainan Airlines Co or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Hainan Airlines Co
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Hainan Airlines |
Citic Offshore and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Hainan Airlines
The main advantage of trading using opposite Citic Offshore and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore 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.| Citic Offshore vs. Ningbo Tech Bank Co | Citic Offshore vs. Unisplendour Corp | Citic Offshore vs. GRG Banking Equipment | Citic Offshore vs. Industrial Bank Co |
| Hainan Airlines vs. Nanjing Putian Telecommunications | Hainan Airlines vs. Citic Offshore Helicopter | Hainan Airlines vs. TianJin 712 Communication | Hainan Airlines vs. Bank of Communications |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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