Correlation Between Hainan Airlines and Wuhan Hvsen
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By analyzing existing cross correlation between Hainan Airlines Co and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Hainan Airlines and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Wuhan Hvsen.
Diversification Opportunities for Hainan Airlines and Wuhan Hvsen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Wuhan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Hainan Airlines and Wuhan Hvsen
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 1.71 times less return on investment than Wuhan Hvsen. But when comparing it to its historical volatility, Hainan Airlines Co is 1.22 times less risky than Wuhan Hvsen. It trades about 0.04 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Wuhan Hvsen Biotechnology on November 3, 2024 and sell it today you would earn a total of 252.00 from holding Wuhan Hvsen Biotechnology or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Hainan Airlines |
| Wuhan Hvsen Biotechnology |
Hainan Airlines and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Wuhan Hvsen
The main advantage of trading using opposite Hainan Airlines and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Hainan Airlines vs. Tianjin Hi Tech Development | Hainan Airlines vs. Healthcare Co | Hainan Airlines vs. Soyea Technology Co | Hainan Airlines vs. Mingchen Health Co |
| Wuhan Hvsen vs. Hunan Mendale Hometextile | Wuhan Hvsen vs. Hangzhou Guotai Environmental | Wuhan Hvsen vs. Eit Environmental Development | Wuhan Hvsen vs. GreenTech Environmental Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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