Correlation Between 159681 and Hainan Airlines
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By analyzing existing cross correlation between 159681 and Hainan Airlines Co, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Hainan Airlines.
Diversification Opportunities for 159681 and Hainan Airlines
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 159681 and Hainan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and 159681 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 159681 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 159681 i.e., 159681 and Hainan Airlines go up and down completely randomly.
Pair Corralation between 159681 and Hainan Airlines
Assuming the 90 days trading horizon 159681 is expected to generate 1.03 times more return on investment than Hainan Airlines. However, 159681 is 1.03 times more volatile than Hainan Airlines Co. It trades about 0.23 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.17 per unit of risk. If you would invest 91.00 in 159681 on November 28, 2024 and sell it today you would earn a total of 6.00 from holding 159681 or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Hainan Airlines Co
Performance |
| Timeline |
| 159681 |
| Hainan Airlines |
159681 and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Hainan Airlines
The main advantage of trading using opposite 159681 and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Hainan Airlines Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hainan Airlines vs. Quectel Wireless Solutions | Hainan Airlines vs. Jinsanjiang Silicon Material | Hainan Airlines vs. Huizhou Speed Wireless | Hainan Airlines vs. Xizi Clean Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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