Correlation Between Hainan HNA and Eit Environmental
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By analyzing existing cross correlation between Hainan HNA Infrastructure and Eit Environmental Development, you can compare the effects of market volatilities on Hainan HNA and Eit Environmental 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 HNA with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan HNA and Eit Environmental.
Diversification Opportunities for Hainan HNA and Eit Environmental
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Eit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hainan HNA Infrastructure and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental and Hainan HNA 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 HNA Infrastructure are associated (or correlated) with Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Hainan HNA i.e., Hainan HNA and Eit Environmental go up and down completely randomly.
Pair Corralation between Hainan HNA and Eit Environmental
Assuming the 90 days trading horizon Hainan HNA is expected to generate 1.62 times less return on investment than Eit Environmental. But when comparing it to its historical volatility, Hainan HNA Infrastructure is 1.39 times less risky than Eit Environmental. It trades about 0.14 of its potential returns per unit of risk. Eit Environmental Development is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,109 in Eit Environmental Development on September 23, 2024 and sell it today you would earn a total of 491.00 from holding Eit Environmental Development or generate 44.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hainan HNA Infrastructure vs. Eit Environmental Development
Performance |
Timeline |
Hainan HNA Infrastructure |
Eit Environmental |
Hainan HNA and Eit Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hainan HNA and Eit Environmental
The main advantage of trading using opposite Hainan HNA and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan HNA position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.Hainan HNA vs. China Sports Industry | Hainan HNA vs. Sportsoul Co Ltd | Hainan HNA vs. Zhejiang Publishing Media | Hainan HNA vs. Jiangsu Jinling Sports |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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