Correlation Between Hainan Airlines and Qingdao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Airlines Co and Qingdao Foods Co, you can compare the effects of market volatilities on Hainan Airlines and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Qingdao Foods.
Diversification Opportunities for Hainan Airlines and Qingdao Foods
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Qingdao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Qingdao Foods go up and down completely randomly.
Pair Corralation between Hainan Airlines and Qingdao Foods
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.95 times more return on investment than Qingdao Foods. However, Hainan Airlines Co is 1.06 times less risky than Qingdao Foods. It trades about -0.04 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about -0.28 per unit of risk. If you would invest 31.00 in Hainan Airlines Co on October 12, 2024 and sell it today you would lose (1.00) from holding Hainan Airlines Co or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Qingdao Foods Co
Performance |
| Timeline |
| Hainan Airlines |
| Qingdao Foods |
Hainan Airlines and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Qingdao Foods
The main advantage of trading using opposite Hainan Airlines and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' long position.| Hainan Airlines vs. BYD Co Ltd | Hainan Airlines vs. China Mobile Limited | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial |
| Qingdao Foods vs. Shenyang Chemical Industry | Qingdao Foods vs. Jilin Chemical Fibre | Qingdao Foods vs. Heilongjiang Publishing Media | Qingdao Foods vs. Hainan Airlines Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |