Correlation Between Hainan HNA and Beken Corp
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By analyzing existing cross correlation between Hainan HNA Infrastructure and Beken Corp, you can compare the effects of market volatilities on Hainan HNA and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan HNA and Beken Corp.
Diversification Opportunities for Hainan HNA and Beken Corp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Beken is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hainan HNA Infrastructure and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Hainan HNA i.e., Hainan HNA and Beken Corp go up and down completely randomly.
Pair Corralation between Hainan HNA and Beken Corp
Assuming the 90 days trading horizon Hainan HNA Infrastructure is expected to under-perform the Beken Corp. But the stock apears to be less risky and, when comparing its historical volatility, Hainan HNA Infrastructure is 1.7 times less risky than Beken Corp. The stock trades about -0.02 of its potential returns per unit of risk. The Beken Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,922 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 173.00 from holding Beken Corp or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan HNA Infrastructure vs. Beken Corp
Performance |
| Timeline |
| Hainan HNA Infrastructure |
| Beken Corp |
Hainan HNA and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan HNA and Beken Corp
The main advantage of trading using opposite Hainan HNA and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan HNA position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp'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 |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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