Correlation Between Hainan Airlines and Tibet Huayu
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By analyzing existing cross correlation between Hainan Airlines Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Hainan Airlines and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Tibet Huayu.
Diversification Opportunities for Hainan Airlines and Tibet Huayu
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hainan and Tibet is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Tibet Huayu go up and down completely randomly.
Pair Corralation between Hainan Airlines and Tibet Huayu
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.07 times more return on investment than Tibet Huayu. However, Hainan Airlines is 1.07 times more volatile than Tibet Huayu Mining. It trades about 0.15 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.06 per unit of risk. If you would invest 18.00 in Hainan Airlines Co on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Hainan Airlines Co or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Hainan Airlines |
| Tibet Huayu Mining |
Hainan Airlines and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Tibet Huayu
The main advantage of trading using opposite Hainan Airlines and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Kweichow Moutai Co | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. China Mobile Limited |
| Tibet Huayu vs. Henan Shuanghui Investment | Tibet Huayu vs. Aluminum Corp of | Tibet Huayu vs. Cultural Investment Holdings | Tibet Huayu vs. Ye Chiu Metal |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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