Correlation Between Hainan Airlines and Fujian Oriental
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By analyzing existing cross correlation between Hainan Airlines Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Hainan Airlines and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Fujian Oriental.
Diversification Opportunities for Hainan Airlines and Fujian Oriental
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Fujian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Fujian Oriental go up and down completely randomly.
Pair Corralation between Hainan Airlines and Fujian Oriental
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.84 times more return on investment than Fujian Oriental. However, Hainan Airlines Co is 1.18 times less risky than Fujian Oriental. It trades about 0.02 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.02 per unit of risk. If you would invest 29.00 in Hainan Airlines Co on September 3, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Fujian Oriental Silver
Performance |
| Timeline |
| Hainan Airlines |
| Fujian Oriental Silver |
Hainan Airlines and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Fujian Oriental
The main advantage of trading using opposite Hainan Airlines and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Hainan Airlines vs. Fujian Oriental Silver | Hainan Airlines vs. Guangdong Jingyi Metal | Hainan Airlines vs. Sichuan Yahua Industrial | Hainan Airlines vs. Pengxin International Mining |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China | Fujian Oriental vs. Agricultural Bank of |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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