Correlation Between Hainan HNA and Ningbo Construction
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By analyzing existing cross correlation between Hainan HNA Infrastructure and Ningbo Construction Co, you can compare the effects of market volatilities on Hainan HNA and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan HNA and Ningbo Construction.
Diversification Opportunities for Hainan HNA and Ningbo Construction
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Ningbo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hainan HNA Infrastructure and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Hainan HNA i.e., Hainan HNA and Ningbo Construction go up and down completely randomly.
Pair Corralation between Hainan HNA and Ningbo Construction
Assuming the 90 days trading horizon Hainan HNA Infrastructure is expected to generate 0.73 times more return on investment than Ningbo Construction. However, Hainan HNA Infrastructure is 1.36 times less risky than Ningbo Construction. It trades about 0.04 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.0 per unit of risk. If you would invest 351.00 in Hainan HNA Infrastructure on October 26, 2024 and sell it today you would earn a total of 14.00 from holding Hainan HNA Infrastructure or generate 3.99% 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. Ningbo Construction Co
Performance |
| Timeline |
| Hainan HNA Infrastructure |
| Ningbo Construction |
Hainan HNA and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan HNA and Ningbo Construction
The main advantage of trading using opposite Hainan HNA and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan HNA position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Hainan HNA vs. Guangdong Silvere Sci | Hainan HNA vs. China Everbright Bank | Hainan HNA vs. Agricultural Bank of | Hainan HNA vs. Ping An Insurance |
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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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