Correlation Between Hainan Airlines and Jiangxi JDL
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By analyzing existing cross correlation between Hainan Airlines Co and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Hainan Airlines and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Jiangxi JDL.
Diversification Opportunities for Hainan Airlines and Jiangxi JDL
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Jiangxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Hainan Airlines and Jiangxi JDL
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.13 times more return on investment than Jiangxi JDL. However, Hainan Airlines is 1.13 times more volatile than Jiangxi JDL Environmental. It trades about 0.04 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.01 per unit of risk. If you would invest 159.00 in Hainan Airlines Co on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Hainan Airlines Co or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Hainan Airlines |
| Jiangxi JDL Environmental |
Hainan Airlines and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Jiangxi JDL
The main advantage of trading using opposite Hainan Airlines and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Bank of China | Hainan Airlines vs. PetroChina Co Ltd |
| Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Bank of China | Jiangxi JDL vs. PetroChina Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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