Correlation Between Hainan Airlines and Jiangsu Jinling
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By analyzing existing cross correlation between Hainan Airlines Co and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Hainan Airlines and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Jiangsu Jinling.
Diversification Opportunities for Hainan Airlines and Jiangsu Jinling
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Jiangsu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Hainan Airlines and Jiangsu Jinling
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.73 times more return on investment than Jiangsu Jinling. However, Hainan Airlines Co is 1.37 times less risky than Jiangsu Jinling. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.05 per unit of risk. If you would invest 162.00 in Hainan Airlines Co on September 30, 2024 and sell it today you would earn a total of 15.00 from holding Hainan Airlines Co or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Hainan Airlines |
| Jiangsu Jinling Sports |
Hainan Airlines and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Jiangsu Jinling
The main advantage of trading using opposite Hainan Airlines and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. China Construction Bank | Hainan Airlines vs. Bank of China |
| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. CNOOC Limited | Jiangsu Jinling vs. Ping An Insurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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