Correlation Between Hainan Airlines and JCHX Mining
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By analyzing existing cross correlation between Hainan Airlines Co and JCHX Mining Management, you can compare the effects of market volatilities on Hainan Airlines and JCHX Mining 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 JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and JCHX Mining.
Diversification Opportunities for Hainan Airlines and JCHX Mining
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and JCHX is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management 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 JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and JCHX Mining go up and down completely randomly.
Pair Corralation between Hainan Airlines and JCHX Mining
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 6.73 times less return on investment than JCHX Mining. But when comparing it to its historical volatility, Hainan Airlines Co is 1.08 times less risky than JCHX Mining. It trades about 0.01 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,662 in JCHX Mining Management on September 28, 2024 and sell it today you would earn a total of 1,118 from holding JCHX Mining Management or generate 42.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hainan Airlines Co vs. JCHX Mining Management
Performance |
| Timeline |
| Hainan Airlines |
| JCHX Mining Management |
Hainan Airlines and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and JCHX Mining
The main advantage of trading using opposite Hainan Airlines and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. China Construction Bank | Hainan Airlines vs. Bank of China |
| JCHX Mining vs. Yunnan Copper Co | JCHX Mining vs. Huaxia Fund Management | JCHX Mining vs. China Asset Management | JCHX Mining vs. Hainan Airlines 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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