Correlation Between Western Mining and Hainan Airlines
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By analyzing existing cross correlation between Western Mining Co and Hainan Airlines Co, you can compare the effects of market volatilities on Western Mining 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 Western Mining with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Hainan Airlines.
Diversification Opportunities for Western Mining and Hainan Airlines
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Hainan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining 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 Western Mining 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 Western Mining 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 Western Mining i.e., Western Mining and Hainan Airlines go up and down completely randomly.
Pair Corralation between Western Mining and Hainan Airlines
Assuming the 90 days trading horizon Western Mining Co is expected to generate 1.02 times more return on investment than Hainan Airlines. However, Western Mining is 1.02 times more volatile than Hainan Airlines Co. It trades about 0.06 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.0 per unit of risk. If you would invest 1,029 in Western Mining Co on October 16, 2024 and sell it today you would earn a total of 691.00 from holding Western Mining Co or generate 67.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Hainan Airlines Co
Performance |
| Timeline |
| Western Mining |
| Hainan Airlines |
Western Mining and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Hainan Airlines
The main advantage of trading using opposite Western Mining and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining 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.| Western Mining vs. Yindu Kitchen Equipment | Western Mining vs. Healthcare Co | Western Mining vs. PKU HealthCare Corp | Western Mining vs. Everjoy Health Group |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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