Correlation Between Hainan Airlines and Jahen Household
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By analyzing existing cross correlation between Hainan Airlines Co and Jahen Household Products, you can compare the effects of market volatilities on Hainan Airlines and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Jahen Household.
Diversification Opportunities for Hainan Airlines and Jahen Household
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Jahen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Jahen Household go up and down completely randomly.
Pair Corralation between Hainan Airlines and Jahen Household
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 2.32 times more return on investment than Jahen Household. However, Hainan Airlines is 2.32 times more volatile than Jahen Household Products. It trades about 0.23 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.01 per unit of risk. If you would invest 126.00 in Hainan Airlines Co on August 29, 2024 and sell it today you would earn a total of 41.00 from holding Hainan Airlines Co or generate 32.54% 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. Jahen Household Products
Performance |
| Timeline |
| Hainan Airlines |
| Jahen Household Products |
Hainan Airlines and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Jahen Household
The main advantage of trading using opposite Hainan Airlines and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Hainan Airlines vs. PetroChina Co Ltd | Hainan Airlines vs. China State Construction | Hainan Airlines vs. China Mobile Limited | Hainan Airlines vs. Industrial and Commercial |
| Jahen Household vs. Baoshan Iron Steel | Jahen Household vs. Shandong Gold Mining | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Inner Mongolia BaoTou |
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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