Correlation Between Wuhan Yangtze and Hainan Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Hainan Airlines Co, you can compare the effects of market volatilities on Wuhan Yangtze and Hainan Airlines 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 Wuhan Yangtze with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Hainan Airlines.
Diversification Opportunities for Wuhan Yangtze and Hainan Airlines
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Hainan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Hainan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Hainan Airlines go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Hainan Airlines
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.12 times more return on investment than Hainan Airlines. However, Wuhan Yangtze is 1.12 times more volatile than Hainan Airlines Co. It trades about 0.03 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.02 per unit of risk. If you would invest 1,708 in Wuhan Yangtze Communication on October 16, 2024 and sell it today you would earn a total of 431.00 from holding Wuhan Yangtze Communication or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Hainan Airlines Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Hainan Airlines |
Wuhan Yangtze and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Hainan Airlines
The main advantage of trading using opposite Wuhan Yangtze and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Hainan Airlines 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 Hainan Airlines will offset losses from the drop in Hainan Airlines' long position.| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
| Hainan Airlines vs. Lootom Telcovideo Network | Hainan Airlines vs. Holitech Technology Co | Hainan Airlines vs. Zhejiang Kingland Pipeline | Hainan Airlines vs. Fujian Wanchen Biotechnology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |