Correlation Between Hainan Airlines and Fuzhou Rockchip
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By analyzing existing cross correlation between Hainan Airlines Co and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Hainan Airlines and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Fuzhou Rockchip.
Diversification Opportunities for Hainan Airlines and Fuzhou Rockchip
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Fuzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Hainan Airlines and Fuzhou Rockchip
Assuming the 90 days trading horizon Hainan Airlines is expected to generate 50.53 times less return on investment than Fuzhou Rockchip. But when comparing it to its historical volatility, Hainan Airlines Co is 2.31 times less risky than Fuzhou Rockchip. It trades about 0.01 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,810 in Fuzhou Rockchip Electronics on October 16, 2024 and sell it today you would earn a total of 3,290 from holding Fuzhou Rockchip Electronics or generate 37.34% 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. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Hainan Airlines |
| Fuzhou Rockchip Elec |
Hainan Airlines and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Fuzhou Rockchip
The main advantage of trading using opposite Hainan Airlines and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip'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 |
| Fuzhou Rockchip vs. Hainan Airlines Co | Fuzhou Rockchip vs. Sinofibers Technology Co | Fuzhou Rockchip vs. Kuangda Technology Group | Fuzhou Rockchip vs. Ingenic Semiconductor |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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