Correlation Between Hainan Haiqi and Hainan Airlines
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Hainan Airlines Co, you can compare the effects of market volatilities on Hainan Haiqi 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 Hainan Haiqi with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Hainan Airlines.
Diversification Opportunities for Hainan Haiqi and Hainan Airlines
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hainan and Hainan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Hainan Haiqi 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 Hainan Haiqi Transportation 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 Hainan Haiqi i.e., Hainan Haiqi and Hainan Airlines go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Hainan Airlines
Assuming the 90 days trading horizon Hainan Haiqi is expected to generate 6.09 times less return on investment than Hainan Airlines. But when comparing it to its historical volatility, Hainan Haiqi Transportation is 1.14 times less risky than Hainan Airlines. It trades about 0.04 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Hainan Airlines Co on October 22, 2024 and sell it today you would earn a total of 11.00 from holding Hainan Airlines Co or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Hainan Airlines Co
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Hainan Airlines |
Hainan Haiqi and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Hainan Airlines
The main advantage of trading using opposite Hainan Haiqi and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi 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.| Hainan Haiqi vs. Hubei Xingfa Chemicals | Hainan Haiqi vs. Ningbo Kangqiang Electronics | Hainan Haiqi vs. Integrated Electronic Systems | Hainan Haiqi vs. Dongguan Tarry Electronics |
| Hainan Airlines vs. Chengdu Xinzhu RoadBridge | Hainan Airlines vs. Liuzhou Chemical Industry | Hainan Airlines vs. Hainan Haiqi Transportation | Hainan Airlines vs. Maoming Petro Chemical Shihua |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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