Correlation Between Guangdong Jingyi and Hainan Airlines
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Hainan Airlines Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Hainan Airlines.
Diversification Opportunities for Guangdong Jingyi and Hainan Airlines
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Hainan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Hainan Airlines go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Hainan Airlines
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 2.92 times less return on investment than Hainan Airlines. In addition to that, Guangdong Jingyi is 1.31 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 0.04 per unit of volatility. If you would invest 146.00 in Hainan Airlines Co on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Hainan Airlines Co or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Hainan Airlines Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Hainan Airlines |
Guangdong Jingyi and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Hainan Airlines
The main advantage of trading using opposite Guangdong Jingyi and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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