Correlation Between Hainan Airlines and Zhejiang Kingland
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By analyzing existing cross correlation between Hainan Airlines Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Hainan Airlines and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Zhejiang Kingland.
Diversification Opportunities for Hainan Airlines and Zhejiang Kingland
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and Zhejiang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Hainan Airlines and Zhejiang Kingland
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.51 times more return on investment than Zhejiang Kingland. However, Hainan Airlines is 1.51 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.0 per unit of risk. If you would invest 27.00 in Hainan Airlines Co on October 16, 2024 and sell it today you would earn a total of 3.00 from holding Hainan Airlines Co or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Hainan Airlines |
| Zhejiang Kingland |
Hainan Airlines and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Zhejiang Kingland
The main advantage of trading using opposite Hainan Airlines and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland'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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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