Correlation Between Hainan Airlines and 37 Interactive
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By analyzing existing cross correlation between Hainan Airlines Co and 37 Interactive Entertainment, you can compare the effects of market volatilities on Hainan Airlines and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and 37 Interactive.
Diversification Opportunities for Hainan Airlines and 37 Interactive
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and 002555 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and 37 Interactive go up and down completely randomly.
Pair Corralation between Hainan Airlines and 37 Interactive
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 1.5 times more return on investment than 37 Interactive. However, Hainan Airlines is 1.5 times more volatile than 37 Interactive Entertainment. It trades about 0.17 of its potential returns per unit of risk. 37 Interactive Entertainment is currently generating about 0.12 per unit of risk. If you would invest 166.00 in Hainan Airlines Co on September 24, 2024 and sell it today you would earn a total of 18.00 from holding Hainan Airlines Co or generate 10.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hainan Airlines Co vs. 37 Interactive Entertainment
Performance |
Timeline |
Hainan Airlines |
37 Interactive Enter |
Hainan Airlines and 37 Interactive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hainan Airlines and 37 Interactive
The main advantage of trading using opposite Hainan Airlines and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive's long position.Hainan Airlines vs. Industrial and Commercial | Hainan Airlines vs. Agricultural Bank of | Hainan Airlines vs. China Construction Bank | Hainan Airlines vs. Bank of China |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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