Correlation Between Eyebright Medical and Hainan Airlines
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By analyzing existing cross correlation between Eyebright Medical Technology and Hainan Airlines Co, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Hainan Airlines.
Diversification Opportunities for Eyebright Medical and Hainan Airlines
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eyebright and Hainan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and Hainan Airlines go up and down completely randomly.
Pair Corralation between Eyebright Medical and Hainan Airlines
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 0.85 times more return on investment than Hainan Airlines. However, Eyebright Medical Technology is 1.18 times less risky than Hainan Airlines. It trades about 0.06 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.09 per unit of risk. If you would invest 9,255 in Eyebright Medical Technology on October 31, 2024 and sell it today you would earn a total of 224.00 from holding Eyebright Medical Technology or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Hainan Airlines Co
Performance |
| Timeline |
| Eyebright Medical |
| Hainan Airlines |
Eyebright Medical and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Hainan Airlines
The main advantage of trading using opposite Eyebright Medical and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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.| Eyebright Medical vs. Aba Chemicals Corp | Eyebright Medical vs. Shanghai Jinfeng Wine | Eyebright Medical vs. Beijing Yanjing Brewery | Eyebright Medical vs. Jiugui Liquor Co |
| Hainan Airlines vs. Sanbo Hospital Management | Hainan Airlines vs. Zhongshan Public Utilities | Hainan Airlines vs. Cicc Fund Management | Hainan Airlines vs. JCHX Mining Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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