Correlation Between Fujian Wanchen and Hainan Airlines
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Hainan Airlines Co, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Hainan Airlines.
Diversification Opportunities for Fujian Wanchen and Hainan Airlines
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Hainan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Hainan Airlines go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Hainan Airlines
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to under-perform the Hainan Airlines. In addition to that, Fujian Wanchen is 1.12 times more volatile than Hainan Airlines Co. It trades about -0.03 of its total potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.01 per unit of volatility. If you would invest 30.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Hainan Airlines Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Hainan Airlines Co
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Hainan Airlines |
Fujian Wanchen and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Hainan Airlines
The main advantage of trading using opposite Fujian Wanchen and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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