Correlation Between Hainan Airlines and Aluminum Corp
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By analyzing existing cross correlation between Hainan Airlines Co and Aluminum Corp of, you can compare the effects of market volatilities on Hainan Airlines and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Aluminum Corp.
Diversification Opportunities for Hainan Airlines and Aluminum Corp
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Aluminum is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Aluminum Corp go up and down completely randomly.
Pair Corralation between Hainan Airlines and Aluminum Corp
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 2.79 times more return on investment than Aluminum Corp. However, Hainan Airlines is 2.79 times more volatile than Aluminum Corp of. It trades about 0.04 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.07 per unit of risk. If you would invest 195.00 in Hainan Airlines Co on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Hainan Airlines Co or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Aluminum Corp of
Performance |
| Timeline |
| Hainan Airlines |
| Aluminum Corp |
Hainan Airlines and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Aluminum Corp
The main advantage of trading using opposite Hainan Airlines and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Hainan Airlines vs. Anhui Jianghuai Automobile | Hainan Airlines vs. Linewell Software Co | Hainan Airlines vs. Ningbo Fangzheng Automobile | Hainan Airlines vs. Jiangsu Xinri E Vehicle |
| Aluminum Corp vs. Shengda Mining Co | Aluminum Corp vs. Dareway Software Co | Aluminum Corp vs. Xizi Clean Energy | Aluminum Corp vs. JCHX Mining Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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