Correlation Between Hainan Airlines and Wuhan Yangtze
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By analyzing existing cross correlation between Hainan Airlines Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Hainan Airlines and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Wuhan Yangtze.
Diversification Opportunities for Hainan Airlines and Wuhan Yangtze
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Wuhan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Hainan Airlines and Wuhan Yangtze
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.86 times more return on investment than Wuhan Yangtze. However, Hainan Airlines Co is 1.16 times less risky than Wuhan Yangtze. It trades about 0.01 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about -0.36 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Hainan Airlines |
| Wuhan Yangtze Commun |
Hainan Airlines and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Wuhan Yangtze
The main advantage of trading using opposite Hainan Airlines and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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