Correlation Between Hainan Airlines and Sublime China
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By analyzing existing cross correlation between Hainan Airlines Co and Sublime China Information, you can compare the effects of market volatilities on Hainan Airlines and Sublime China 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 Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Sublime China.
Diversification Opportunities for Hainan Airlines and Sublime China
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Sublime is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China 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 Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Sublime China go up and down completely randomly.
Pair Corralation between Hainan Airlines and Sublime China
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 8.33 times less return on investment than Sublime China. But when comparing it to its historical volatility, Hainan Airlines Co is 2.51 times less risky than Sublime China. It trades about 0.08 of its potential returns per unit of risk. Sublime China Information is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,073 in Sublime China Information on November 3, 2024 and sell it today you would earn a total of 1,935 from holding Sublime China Information or generate 31.86% 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. Sublime China Information
Performance |
| Timeline |
| Hainan Airlines |
| Sublime China Information |
Hainan Airlines and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Sublime China
The main advantage of trading using opposite Hainan Airlines and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Sublime China 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 Sublime China will offset losses from the drop in Sublime China's long position.| Hainan Airlines vs. Guangzhou Seagull Kitchen | Hainan Airlines vs. Changzhou Evergreen Technology | Hainan Airlines vs. Linktel Technologies Co | Hainan Airlines vs. Sinofibers Technology Co |
| Sublime China vs. Huatian Hotel Group | Sublime China vs. SSAW Hotels Resorts | Sublime China vs. Bomesc Offshore Engineering | Sublime China vs. Sharetronic Data Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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