Correlation Between Hainan Airlines and Iat Automobile
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By analyzing existing cross correlation between Hainan Airlines Co and Iat Automobile Technology, you can compare the effects of market volatilities on Hainan Airlines and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Airlines and Iat Automobile.
Diversification Opportunities for Hainan Airlines and Iat Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Iat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Airlines Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Hainan Airlines i.e., Hainan Airlines and Iat Automobile go up and down completely randomly.
Pair Corralation between Hainan Airlines and Iat Automobile
Assuming the 90 days trading horizon Hainan Airlines Co is expected to generate 0.97 times more return on investment than Iat Automobile. However, Hainan Airlines Co is 1.03 times less risky than Iat Automobile. It trades about 0.11 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.13 per unit of risk. If you would invest 166.00 in Hainan Airlines Co on September 25, 2024 and sell it today you would earn a total of 11.00 from holding Hainan Airlines Co or generate 6.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hainan Airlines Co vs. Iat Automobile Technology
Performance |
Timeline |
Hainan Airlines |
Iat Automobile Technology |
Hainan Airlines and Iat Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hainan Airlines and Iat Automobile
The main advantage of trading using opposite Hainan Airlines and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Airlines position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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