Correlation Between Mengtian Home and Hainan Airlines
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By analyzing existing cross correlation between Mengtian Home Group and Hainan Airlines Co, you can compare the effects of market volatilities on Mengtian Home 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 Mengtian Home with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Hainan Airlines.
Diversification Opportunities for Mengtian Home and Hainan Airlines
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mengtian and Hainan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Mengtian Home 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 Mengtian Home Group 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 Mengtian Home i.e., Mengtian Home and Hainan Airlines go up and down completely randomly.
Pair Corralation between Mengtian Home and Hainan Airlines
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 1.03 times more return on investment than Hainan Airlines. However, Mengtian Home is 1.03 times more volatile than Hainan Airlines Co. It trades about 0.31 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.15 per unit of risk. If you would invest 1,103 in Mengtian Home Group on November 27, 2024 and sell it today you would earn a total of 97.00 from holding Mengtian Home Group or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Hainan Airlines Co
Performance |
| Timeline |
| Mengtian Home Group |
| Hainan Airlines |
Mengtian Home and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Hainan Airlines
The main advantage of trading using opposite Mengtian Home and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home 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.| Mengtian Home vs. Gan Yuan Foods | Mengtian Home vs. Chengtun Mining Group | Mengtian Home vs. Jiangsu Financial Leasing | Mengtian Home vs. Ningbo Jintian Copper |
| Hainan Airlines vs. Queclink Wireless Solutions | Hainan Airlines vs. Shenzhen Zqgame | Hainan Airlines vs. Huizhou Speed Wireless | Hainan Airlines vs. Guangdong Qunxing Toys |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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