Correlation Between Hainan Airlines and Shenyang Chemical
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By analyzing existing cross correlation between Hainan Airlines Co and Shenyang Chemical Industry, you can compare the effects of market volatilities on Hainan Airlines and Shenyang Chemical 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 Airlines with a short position of Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Shenyang Chemical.
Diversification Opportunities for Hainan Airlines and Shenyang Chemical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hainan and Shenyang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical and Hainan 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 Hainan Airlines Co are associated (or correlated) with Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Hainan Airlines and Shenyang Chemical
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.16 times more return on investment than Shenyang Chemical. However, Hainan Airlines is 1.16 times more volatile than Shenyang Chemical Industry. It trades about 0.03 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.02 per unit of risk. If you would invest 27.00 in Hainan Airlines Co on November 2, 2024 and sell it today you would earn a total of 5.00 from holding Hainan Airlines Co or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Hainan Airlines |
| Shenyang Chemical |
Hainan Airlines and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Shenyang Chemical
The main advantage of trading using opposite Hainan Airlines and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's long position.| Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Kweichow Moutai Co | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. China Mobile Limited |
| Shenyang Chemical vs. Fibocom Wireless | Shenyang Chemical vs. Runjian Communication Co | Shenyang Chemical vs. Guangdong Jinma Entertainment | Shenyang Chemical vs. Fiberhome Telecommunication Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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