Correlation Between Juneyao Airlines and Hainan Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Juneyao Airlines and Hainan Airlines Co, you can compare the effects of market volatilities on Juneyao Airlines 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 Juneyao Airlines with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Hainan Airlines.
Diversification Opportunities for Juneyao Airlines and Hainan Airlines
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juneyao and Hainan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Juneyao Airlines 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 Juneyao Airlines 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 Juneyao Airlines i.e., Juneyao Airlines and Hainan Airlines go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Hainan Airlines
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 1.62 times less return on investment than Hainan Airlines. But when comparing it to its historical volatility, Juneyao Airlines is 1.16 times less risky than Hainan Airlines. It trades about 0.03 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Hainan Airlines Co on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Hainan Airlines Co or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juneyao Airlines vs. Hainan Airlines Co
Performance |
| Timeline |
| Juneyao Airlines |
| Hainan Airlines |
Juneyao Airlines and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Hainan Airlines
The main advantage of trading using opposite Juneyao Airlines and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines 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.| Juneyao Airlines vs. PetroChina Co Ltd | Juneyao Airlines vs. China State Construction | Juneyao Airlines vs. China Mobile Limited | Juneyao Airlines vs. Industrial and Commercial |
| Hainan Airlines vs. PetroChina Co Ltd | Hainan Airlines vs. China State Construction | Hainan Airlines vs. China Mobile Limited | Hainan Airlines vs. Industrial and Commercial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |