Correlation Between Zoy Home and Hainan Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoy Home Furnishing and Hainan Airlines Co, you can compare the effects of market volatilities on Zoy 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 Zoy Home with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Hainan Airlines.
Diversification Opportunities for Zoy Home and Hainan Airlines
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoy and Hainan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Zoy 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and Hainan Airlines go up and down completely randomly.
Pair Corralation between Zoy Home and Hainan Airlines
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Hainan Airlines. In addition to that, Zoy Home is 1.53 times more volatile than Hainan Airlines Co. It trades about 0.0 of its total potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.0 per unit of volatility. If you would invest 183.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would lose (19.00) from holding Hainan Airlines Co or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Hainan Airlines Co
Performance |
| Timeline |
| Zoy Home Furnishing |
| Hainan Airlines |
Zoy Home and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Hainan Airlines
The main advantage of trading using opposite Zoy Home and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy 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.| Zoy Home vs. Lutian Machinery Co | Zoy Home vs. Nanxing Furniture Machinery | Zoy Home vs. Long Yuan Construction | Zoy Home vs. Shenzhen Zhongzhuang Construction |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |