Correlation Between Hainan Airlines and Shanghai Yaoji
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By analyzing existing cross correlation between Hainan Airlines Co and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Hainan Airlines and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Shanghai Yaoji.
Diversification Opportunities for Hainan Airlines and Shanghai Yaoji
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Shanghai is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Hainan Airlines and Shanghai Yaoji
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 2.64 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Hainan Airlines Co is 1.19 times less risky than Shanghai Yaoji. It trades about 0.02 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,423 in Shanghai Yaoji Playing on October 13, 2024 and sell it today you would earn a total of 1,037 from holding Shanghai Yaoji Playing or generate 72.87% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Hainan Airlines |
| Shanghai Yaoji Playing |
Hainan Airlines and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Shanghai Yaoji
The main advantage of trading using opposite Hainan Airlines and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Hainan Airlines vs. Shaanxi Construction Machinery | Hainan Airlines vs. Sichuan Fulin Transportation | Hainan Airlines vs. Lutian Machinery Co | Hainan Airlines vs. Xingguang Agricultural Mach |
| Shanghai Yaoji vs. Anhui Jianghuai Automobile | Shanghai Yaoji vs. Hainan Airlines Co | Shanghai Yaoji vs. Xiandai Investment Co | Shanghai Yaoji vs. Xiangyang Automobile Bearing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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