Correlation Between Hainan Airlines and Zhonghong Pulin
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By analyzing existing cross correlation between Hainan Airlines Co and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Hainan Airlines and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Zhonghong Pulin.
Diversification Opportunities for Hainan Airlines and Zhonghong Pulin
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Zhonghong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Hainan Airlines and Zhonghong Pulin
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.0 times more return on investment than Zhonghong Pulin. However, Hainan Airlines Co is 1.0 times less risky than Zhonghong Pulin. It trades about 0.03 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.01 per unit of risk. If you would invest 26.00 in Hainan Airlines Co on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Hainan Airlines Co or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Hainan Airlines |
| Zhonghong Pulin Medical |
Hainan Airlines and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Zhonghong Pulin
The main advantage of trading using opposite Hainan Airlines and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Hainan Airlines vs. Bank of China | Hainan Airlines vs. Kweichow Moutai Co | Hainan Airlines vs. PetroChina Co Ltd | Hainan Airlines vs. Bank of Communications |
| Zhonghong Pulin vs. Threes Company Media | Zhonghong Pulin vs. Hainan Airlines Co | Zhonghong Pulin vs. Changjiang Publishing Media | Zhonghong Pulin vs. Beijing Enlight Media |
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 Stocks Directory module to find actively traded stocks across global markets.
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