Correlation Between Hawaiian Holdings and China Eastern
Can any of the company-specific risk be diversified away by investing in both Hawaiian Holdings and China Eastern at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hawaiian Holdings and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Holdings and China Eastern Airlines, you can compare the effects of market volatilities on Hawaiian Holdings and China Eastern 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 Hawaiian Holdings with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Holdings and China Eastern.
Diversification Opportunities for Hawaiian Holdings and China Eastern
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hawaiian and China is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Holdings and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Hawaiian Holdings 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 Hawaiian Holdings are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Hawaiian Holdings i.e., Hawaiian Holdings and China Eastern go up and down completely randomly.
Pair Corralation between Hawaiian Holdings and China Eastern
If you would invest 1,998 in China Eastern Airlines on January 24, 2024 and sell it today you would earn a total of 0.00 from holding China Eastern Airlines or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Hawaiian Holdings vs. China Eastern Airlines
Performance |
Timeline |
Hawaiian Holdings |
China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hawaiian Holdings and China Eastern Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hawaiian Holdings and China Eastern
The main advantage of trading using opposite Hawaiian Holdings and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Holdings position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.Hawaiian Holdings vs. Southwest Airlines | Hawaiian Holdings vs. JetBlue Airways Corp | Hawaiian Holdings vs. United Airlines Holdings | Hawaiian Holdings vs. Delta Air Lines |
China Eastern vs. Merit Medical Systems | China Eastern vs. GDEV Inc | China Eastern vs. Skechers USA | China Eastern vs. HNI Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Transaction History View history of all your transactions and understand their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |