Correlation Between Hainan Airlines and XinJiang GuoTong
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By analyzing existing cross correlation between Hainan Airlines Co and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Hainan Airlines and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and XinJiang GuoTong.
Diversification Opportunities for Hainan Airlines and XinJiang GuoTong
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and XinJiang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Hainan Airlines and XinJiang GuoTong
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.56 times more return on investment than XinJiang GuoTong. However, Hainan Airlines Co is 1.78 times less risky than XinJiang GuoTong. It trades about 0.01 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.26 per unit of risk. If you would invest 30.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Hainan Airlines Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Hainan Airlines |
| XinJiang GuoTong Pipeline |
Hainan Airlines and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and XinJiang GuoTong
The main advantage of trading using opposite Hainan Airlines and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Hainan Airlines vs. Lootom Telcovideo Network | Hainan Airlines vs. Holitech Technology Co | Hainan Airlines vs. Zhejiang Kingland Pipeline | Hainan Airlines vs. Fujian Wanchen Biotechnology |
| XinJiang GuoTong vs. Guangdong Transtek Medical | XinJiang GuoTong vs. Dongguan Tarry Electronics | XinJiang GuoTong vs. CareRay Digital Medical | XinJiang GuoTong vs. Allmed Medical Products |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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