Correlation Between Kuang Chi and Hainan Airlines
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By analyzing existing cross correlation between Kuang Chi Technologies and Hainan Airlines Co, you can compare the effects of market volatilities on Kuang Chi and Hainan Airlines 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 Kuang Chi with a short position of Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Hainan Airlines.
Diversification Opportunities for Kuang Chi and Hainan Airlines
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Hainan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines and Kuang Chi 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 Kuang Chi Technologies are associated (or correlated) with Hainan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of Kuang Chi i.e., Kuang Chi and Hainan Airlines go up and down completely randomly.
Pair Corralation between Kuang Chi and Hainan Airlines
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.04 times more return on investment than Hainan Airlines. However, Kuang Chi is 1.04 times more volatile than Hainan Airlines Co. It trades about 0.28 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.24 per unit of risk. If you would invest 1,978 in Kuang Chi Technologies on September 15, 2024 and sell it today you would earn a total of 2,142 from holding Kuang Chi Technologies or generate 108.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Hainan Airlines Co
Performance |
Timeline |
Kuang Chi Technologies |
Hainan Airlines |
Kuang Chi and Hainan Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Hainan Airlines
The main advantage of trading using opposite Kuang Chi and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Hainan Airlines 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 Hainan Airlines will offset losses from the drop in Hainan Airlines' long position.Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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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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