Correlation Between Hainan Airlines and Shanghai
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By analyzing existing cross correlation between Hainan Airlines Co and Shanghai MG Stationery, you can compare the effects of market volatilities on Hainan Airlines and Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Shanghai.
Diversification Opportunities for Hainan Airlines and Shanghai
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Shanghai is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Shanghai go up and down completely randomly.
Pair Corralation between Hainan Airlines and Shanghai
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.04 times more return on investment than Shanghai. However, Hainan Airlines is 1.04 times more volatile than Shanghai MG Stationery. It trades about 0.02 of its potential returns per unit of risk. Shanghai MG Stationery is currently generating about -0.04 per unit of risk. If you would invest 180.00 in Hainan Airlines Co on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Hainan Airlines Co or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Shanghai MG Stationery
Performance |
| Timeline |
| Hainan Airlines |
| Shanghai MG Stationery |
Hainan Airlines and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Shanghai
The main advantage of trading using opposite Hainan Airlines and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Shanghai 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 Shanghai will offset losses from the drop in Shanghai's long position.| Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Bank of China | Hainan Airlines vs. China Construction Bank |
| Shanghai vs. Kunwu Jiuding Investment | Shanghai vs. Oppein Home Group | Shanghai vs. Harbin Hatou Investment | Shanghai vs. Jointo Energy Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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