Correlation Between Hainan Airlines and Hunan Mendale
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By analyzing existing cross correlation between Hainan Airlines Co and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Hainan Airlines and Hunan Mendale 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 Hainan Airlines with a short position of Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Hunan Mendale.
Diversification Opportunities for Hainan Airlines and Hunan Mendale
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and Hunan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile and Hainan Airlines 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 Hainan Airlines Co are associated (or correlated) with Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Hunan Mendale go up and down completely randomly.
Pair Corralation between Hainan Airlines and Hunan Mendale
Assuming the 90 days trading horizon Hainan Airlines Co is expected to under-perform the Hunan Mendale. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Airlines Co is 2.19 times less risky than Hunan Mendale. The stock trades about -0.15 of its potential returns per unit of risk. The Hunan Mendale Hometextile is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Hunan Mendale Hometextile on November 27, 2024 and sell it today you would earn a total of 69.00 from holding Hunan Mendale Hometextile or generate 22.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Hainan Airlines |
| Hunan Mendale Hometextile |
Hainan Airlines and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Hunan Mendale
The main advantage of trading using opposite Hainan Airlines and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Hainan Airlines vs. Queclink Wireless Solutions | Hainan Airlines vs. Shenzhen Zqgame | Hainan Airlines vs. Huizhou Speed Wireless | Hainan Airlines vs. Guangdong Qunxing Toys |
| Hunan Mendale vs. Gan Yuan Foods | Hunan Mendale vs. Xiangpiaopiao Food Co | Hunan Mendale vs. Suzhou Oriental Semiconductor | Hunan Mendale vs. Air China Ltd |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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