Correlation Between Hainan Airlines and Tianjin Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Airlines Co and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Hainan Airlines and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Tianjin Hi.
Diversification Opportunities for Hainan Airlines and Tianjin Hi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Tianjin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Tianjin Hi go up and down completely randomly.
Pair Corralation between Hainan Airlines and Tianjin Hi
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.81 times more return on investment than Tianjin Hi. However, Hainan Airlines Co is 1.23 times less risky than Tianjin Hi. It trades about 0.03 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.01 per unit of risk. If you would invest 146.00 in Hainan Airlines Co on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Hainan Airlines Co or generate 17.12% 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. Tianjin Hi Tech Development
Performance |
| Timeline |
| Hainan Airlines |
| Tianjin Hi Tech |
Hainan Airlines and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Tianjin Hi
The main advantage of trading using opposite Hainan Airlines and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Hainan Airlines vs. Shenzhen SDG Information | Hainan Airlines vs. Chengtun Mining Group | Hainan Airlines vs. Longmaster Information Tech | Hainan Airlines vs. Focus Media Information |
| Tianjin Hi vs. Olympic Circuit Technology | Tianjin Hi vs. Hainan Airlines Co | Tianjin Hi vs. Sportsoul Co Ltd | Tianjin Hi vs. Linewell Software 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |