Correlation Between Industrial and Hainan HNA
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By analyzing existing cross correlation between Industrial and Commercial and Hainan HNA Infrastructure, you can compare the effects of market volatilities on Industrial and Hainan HNA 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 Industrial with a short position of Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hainan HNA.
Diversification Opportunities for Industrial and Hainan HNA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Hainan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure and Industrial 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 Industrial and Commercial are associated (or correlated) with Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of Industrial i.e., Industrial and Hainan HNA go up and down completely randomly.
Pair Corralation between Industrial and Hainan HNA
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.68 times more return on investment than Hainan HNA. However, Industrial and Commercial is 1.48 times less risky than Hainan HNA. It trades about 0.07 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about 0.0 per unit of risk. If you would invest 477.00 in Industrial and Commercial on August 31, 2024 and sell it today you would earn a total of 138.00 from holding Industrial and Commercial or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Hainan HNA Infrastructure
Performance |
| Timeline |
| Industrial and Commercial |
| Hainan HNA Infrastructure |
Industrial and Hainan HNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hainan HNA
The main advantage of trading using opposite Industrial and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Hainan HNA 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 HNA will offset losses from the drop in Hainan HNA's long position.| Industrial vs. China Publishing Media | Industrial vs. Xiandai Investment Co | Industrial vs. Lander Sports Development | Industrial vs. Zhejiang Construction Investment |
| Hainan HNA vs. Kweichow Moutai Co | Hainan HNA vs. Contemporary Amperex Technology | Hainan HNA vs. G bits Network Technology | Hainan HNA vs. BYD Co Ltd |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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