Correlation Between CITIC Metal and Hainan Airlines
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By analyzing existing cross correlation between CITIC Metal Co and Hainan Airlines Co, you can compare the effects of market volatilities on CITIC Metal 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 CITIC Metal with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Hainan Airlines.
Diversification Opportunities for CITIC Metal and Hainan Airlines
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CITIC and Hainan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal 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 CITIC Metal 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 CITIC Metal 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 CITIC Metal i.e., CITIC Metal and Hainan Airlines go up and down completely randomly.
Pair Corralation between CITIC Metal and Hainan Airlines
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Hainan Airlines. In addition to that, CITIC Metal is 1.13 times more volatile than Hainan Airlines Co. It trades about -0.03 of its total potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.0 per unit of volatility. If you would invest 183.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would lose (19.00) from holding Hainan Airlines Co or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.96% |
| Values | Daily Returns |
CITIC Metal Co vs. Hainan Airlines Co
Performance |
| Timeline |
| CITIC Metal |
| Hainan Airlines |
CITIC Metal and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Hainan Airlines
The main advantage of trading using opposite CITIC Metal and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal 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.| CITIC Metal vs. Sichuan Fulin Transportation | CITIC Metal vs. Fujian Wanchen Biotechnology | CITIC Metal vs. Hubeiyichang Transportation Group | CITIC Metal vs. Zhengping RoadBridge Constr |
| Hainan Airlines vs. Sino Platinum Metals Co | Hainan Airlines vs. Xinjiang Baodi Mining | Hainan Airlines vs. CITIC Metal Co | Hainan Airlines vs. Zhengzhou Coal Mining |
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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