Correlation Between China Construction and Hainan Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Hainan Airlines Co, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Hainan Airlines.
Diversification Opportunities for China Construction and Hainan Airlines
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Hainan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Hainan Airlines go up and down completely randomly.
Pair Corralation between China Construction and Hainan Airlines
Assuming the 90 days trading horizon China Construction is expected to generate 3.18 times less return on investment than Hainan Airlines. But when comparing it to its historical volatility, China Construction Bank is 2.27 times less risky than Hainan Airlines. It trades about 0.07 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Hainan Airlines Co on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Hainan Airlines Co or generate 45.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Hainan Airlines Co
Performance |
| Timeline |
| China Construction Bank |
| Hainan Airlines |
China Construction and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Hainan Airlines
The main advantage of trading using opposite China Construction and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Guangdong Liantai Environmental | China Construction vs. Shenzhen MYS Environmental | China Construction vs. Baoshan Iron Steel | China Construction vs. Holitech Technology Co |
| Hainan Airlines vs. Tianjin Hi Tech Development | Hainan Airlines vs. Healthcare Co | Hainan Airlines vs. Soyea Technology Co | Hainan Airlines vs. Mingchen Health Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets |