Correlation Between Yili Chuanning and Hainan Airlines
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Hainan Airlines Co, you can compare the effects of market volatilities on Yili Chuanning 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 Yili Chuanning with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Hainan Airlines.
Diversification Opportunities for Yili Chuanning and Hainan Airlines
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yili and Hainan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning 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 Yili Chuanning 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 Yili Chuanning 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 Yili Chuanning i.e., Yili Chuanning and Hainan Airlines go up and down completely randomly.
Pair Corralation between Yili Chuanning and Hainan Airlines
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Hainan Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 1.89 times less risky than Hainan Airlines. The stock trades about -0.39 of its potential returns per unit of risk. The Hainan Airlines Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Hainan Airlines Co
Performance |
| Timeline |
| Yili Chuanning Biote |
| Hainan Airlines |
Yili Chuanning and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Hainan Airlines
The main advantage of trading using opposite Yili Chuanning and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning 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.| Yili Chuanning vs. State Grid InformationCommunication | Yili Chuanning vs. East Money Information | Yili Chuanning vs. Shenzhen SDG Information | Yili Chuanning vs. Guilin Seamild Foods |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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