Correlation Between Hainan Airlines and Hangzhou Arcvideo
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By analyzing existing cross correlation between Hainan Airlines Co and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Hainan Airlines and Hangzhou Arcvideo 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 Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Hangzhou Arcvideo.
Diversification Opportunities for Hainan Airlines and Hangzhou Arcvideo
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hainan and Hangzhou is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Hainan Airlines and Hangzhou Arcvideo
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.89 times more return on investment than Hangzhou Arcvideo. However, Hainan Airlines Co is 1.12 times less risky than Hangzhou Arcvideo. It trades about -0.09 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about -0.5 per unit of risk. If you would invest 32.00 in Hainan Airlines Co on October 11, 2024 and sell it today you would lose (2.00) from holding Hainan Airlines Co or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Airlines Co vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Hainan Airlines |
| Hangzhou Arcvideo |
Hainan Airlines and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Airlines and Hangzhou Arcvideo
The main advantage of trading using opposite Hainan Airlines and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Hangzhou Arcvideo 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 Hangzhou Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| Hainan Airlines vs. BYD Co Ltd | Hainan Airlines vs. China Mobile Limited | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. Industrial and Commercial |
| Hangzhou Arcvideo vs. Bingo Software Co | Hangzhou Arcvideo vs. East Money Information | Hangzhou Arcvideo vs. Guangzhou Restaurants Group | Hangzhou Arcvideo 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 Stocks Directory module to find actively traded stocks across global markets.
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