Correlation Between Kweichow Moutai and Hainan Airlines
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By analyzing existing cross correlation between Kweichow Moutai Co and Hainan Airlines Co, you can compare the effects of market volatilities on Kweichow Moutai 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 Kweichow Moutai with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hainan Airlines.
Diversification Opportunities for Kweichow Moutai and Hainan Airlines
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and Hainan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Kweichow Moutai 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 Kweichow Moutai Co 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 Kweichow Moutai i.e., Kweichow Moutai and Hainan Airlines go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hainan Airlines
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Hainan Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.84 times less risky than Hainan Airlines. The stock trades about -0.15 of its potential returns per unit of risk. The Hainan Airlines Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Hainan Airlines Co on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Hainan Airlines Co or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Hainan Airlines Co
Performance |
| Timeline |
| Kweichow Moutai |
| Hainan Airlines |
Kweichow Moutai and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hainan Airlines
The main advantage of trading using opposite Kweichow Moutai and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai 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.| Kweichow Moutai vs. Thunder Software Technology | Kweichow Moutai vs. Jiangsu Hoperun Software | Kweichow Moutai vs. HeNan Splendor Science | Kweichow Moutai vs. Bank of Suzhou |
| Hainan Airlines vs. Bank of China | Hainan Airlines vs. Kweichow Moutai Co | Hainan Airlines vs. PetroChina Co Ltd | Hainan Airlines vs. Bank of Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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