Correlation Between Hainan Airlines and Emdoor Information
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By analyzing existing cross correlation between Hainan Airlines Co and Emdoor Information Co, you can compare the effects of market volatilities on Hainan Airlines and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Emdoor Information.
Diversification Opportunities for Hainan Airlines and Emdoor Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Emdoor is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Emdoor Information go up and down completely randomly.
Pair Corralation between Hainan Airlines and Emdoor Information
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.86 times more return on investment than Emdoor Information. However, Hainan Airlines Co is 1.16 times less risky than Emdoor Information. It trades about 0.15 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.08 per unit of risk. If you would invest 18.00 in Hainan Airlines Co on October 18, 2024 and sell it today you would earn a total of 14.00 from holding Hainan Airlines Co or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Emdoor Information Co
Performance |
| Timeline |
| Hainan Airlines |
| Emdoor Information |
Hainan Airlines and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Emdoor Information
The main advantage of trading using opposite Hainan Airlines and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Hainan Airlines vs. StarPower Semiconductor | Hainan Airlines vs. Peoples Insurance of | Hainan Airlines vs. Nexchip Semiconductor Corp | Hainan Airlines vs. Will Semiconductor Co |
| Emdoor Information vs. Guangxi Wuzhou Communications | Emdoor Information vs. Xizi Clean Energy | Emdoor Information vs. Hainan Airlines Co | Emdoor Information vs. Shaanxi Meineng Clean |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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