Correlation Between Hainan Airlines and Hang Xiao
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By analyzing existing cross correlation between Hainan Airlines Co and Hang Xiao Steel, you can compare the effects of market volatilities on Hainan Airlines and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Hang Xiao.
Diversification Opportunities for Hainan Airlines and Hang Xiao
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Hang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Hang Xiao go up and down completely randomly.
Pair Corralation between Hainan Airlines and Hang Xiao
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 2.83 times more return on investment than Hang Xiao. However, Hainan Airlines is 2.83 times more volatile than Hang Xiao Steel. It trades about 0.27 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.0 per unit of risk. If you would invest 122.00 in Hainan Airlines Co on August 30, 2024 and sell it today you would earn a total of 48.00 from holding Hainan Airlines Co or generate 39.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Hang Xiao Steel
Performance |
| Timeline |
| Hainan Airlines |
| Hang Xiao Steel |
Hainan Airlines and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Hang Xiao
The main advantage of trading using opposite Hainan Airlines and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Hainan Airlines vs. Ming Yang Smart | Hainan Airlines vs. 159681 | Hainan Airlines vs. 159005 | Hainan Airlines vs. Loctek Ergonomic Technology |
| Hang Xiao vs. Biwin Storage Technology | Hang Xiao vs. PetroChina Co Ltd | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. China Construction Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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