Correlation Between Hainan Airlines and Postal Savings
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By analyzing existing cross correlation between Hainan Airlines Co and Postal Savings Bank, you can compare the effects of market volatilities on Hainan Airlines and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Postal Savings.
Diversification Opportunities for Hainan Airlines and Postal Savings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hainan and Postal is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Postal Savings go up and down completely randomly.
Pair Corralation between Hainan Airlines and Postal Savings
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.61 times more return on investment than Postal Savings. However, Hainan Airlines is 1.61 times more volatile than Postal Savings Bank. It trades about 0.02 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.01 per unit of risk. If you would invest 168.00 in Hainan Airlines Co on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Hainan Airlines Co or generate 3.57% 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. Postal Savings Bank
Performance |
| Timeline |
| Hainan Airlines |
| Postal Savings Bank |
Hainan Airlines and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Postal Savings
The main advantage of trading using opposite Hainan Airlines and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Hainan Airlines vs. Postal Savings Bank | Hainan Airlines vs. Panda Financial Holding | Hainan Airlines vs. HeNan Splendor Science | Hainan Airlines vs. Jiangsu Yueda Investment |
| Postal Savings vs. Lotus Health Group | Postal Savings vs. Nanjing Putian Telecommunications | Postal Savings vs. Spring Airlines Co | Postal Savings vs. Fiberhome Telecommunication Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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