Correlation Between Hainan Airlines and Jinling Hotel
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By analyzing existing cross correlation between Hainan Airlines Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Hainan Airlines and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Jinling Hotel.
Diversification Opportunities for Hainan Airlines and Jinling Hotel
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Jinling is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Jinling Hotel go up and down completely randomly.
Pair Corralation between Hainan Airlines and Jinling Hotel
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.21 times more return on investment than Jinling Hotel. However, Hainan Airlines is 1.21 times more volatile than Jinling Hotel Corp. It trades about 0.11 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.34 per unit of risk. If you would invest 30.00 in Hainan Airlines Co on October 17, 2024 and sell it today you would earn a total of 2.00 from holding Hainan Airlines Co or generate 6.67% 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. Jinling Hotel Corp
Performance |
| Timeline |
| Hainan Airlines |
| Jinling Hotel Corp |
Hainan Airlines and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Jinling Hotel
The main advantage of trading using opposite Hainan Airlines and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Hainan Airlines vs. Guocheng Mining Co | Hainan Airlines vs. Jiangsu Yanghe Brewery | Hainan Airlines vs. AVIC Fund Management | Hainan Airlines vs. Shenzhen Silver Basis |
| Jinling Hotel vs. Dhc Software Co | Jinling Hotel vs. Montage Technology Co | Jinling Hotel vs. Kuang Chi Technologies | Jinling Hotel vs. Hainan Airlines 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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