Correlation Between XinJiang GuoTong and Hainan Airlines
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Hainan Airlines Co, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Hainan Airlines.
Diversification Opportunities for XinJiang GuoTong and Hainan Airlines
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Hainan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Hainan Airlines go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Hainan Airlines
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Hainan Airlines. In addition to that, XinJiang GuoTong is 1.01 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 0.02 per unit of volatility. If you would invest 27.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would earn a total of 3.00 from holding Hainan Airlines Co or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Hainan Airlines Co
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Hainan Airlines |
XinJiang GuoTong and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Hainan Airlines
The main advantage of trading using opposite XinJiang GuoTong and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Guangdong Transtek Medical | XinJiang GuoTong vs. Dongguan Tarry Electronics | XinJiang GuoTong vs. CareRay Digital Medical | XinJiang GuoTong vs. Allmed Medical Products |
| Hainan Airlines vs. Lootom Telcovideo Network | Hainan Airlines vs. Holitech Technology Co | Hainan Airlines vs. Zhejiang Kingland Pipeline | Hainan Airlines vs. Fujian Wanchen Biotechnology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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