Correlation Between Hainan HNA and JCET Group
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By analyzing existing cross correlation between Hainan HNA Infrastructure and JCET Group Co, you can compare the effects of market volatilities on Hainan HNA and JCET Group 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 HNA with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan HNA and JCET Group.
Diversification Opportunities for Hainan HNA and JCET Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and JCET is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hainan HNA Infrastructure and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and Hainan HNA 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 HNA Infrastructure are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Hainan HNA i.e., Hainan HNA and JCET Group go up and down completely randomly.
Pair Corralation between Hainan HNA and JCET Group
Assuming the 90 days trading horizon Hainan HNA is expected to generate 1.35 times less return on investment than JCET Group. But when comparing it to its historical volatility, Hainan HNA Infrastructure is 1.21 times less risky than JCET Group. It trades about 0.07 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,137 in JCET Group Co on September 27, 2024 and sell it today you would earn a total of 756.00 from holding JCET Group Co or generate 24.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan HNA Infrastructure vs. JCET Group Co
Performance |
| Timeline |
| Hainan HNA Infrastructure |
| JCET Group |
Hainan HNA and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan HNA and JCET Group
The main advantage of trading using opposite Hainan HNA and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan HNA position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Hainan HNA vs. PetroChina Co Ltd | Hainan HNA vs. China Mobile Limited | Hainan HNA vs. CNOOC Limited | Hainan HNA vs. Ping An Insurance |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi 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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