Correlation Between Shantui Construction and Spring Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantui Construction Machinery and Spring Airlines Co, you can compare the effects of market volatilities on Shantui Construction and Spring 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 Shantui Construction with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Spring Airlines.
Diversification Opportunities for Shantui Construction and Spring Airlines
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantui and Spring is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Spring Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Airlines has no effect on the direction of Shantui Construction i.e., Shantui Construction and Spring Airlines go up and down completely randomly.
Pair Corralation between Shantui Construction and Spring Airlines
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 2.02 times more return on investment than Spring Airlines. However, Shantui Construction is 2.02 times more volatile than Spring Airlines Co. It trades about 0.27 of its potential returns per unit of risk. Spring Airlines Co is currently generating about 0.04 per unit of risk. If you would invest 839.00 in Shantui Construction Machinery on August 29, 2024 and sell it today you would earn a total of 175.00 from holding Shantui Construction Machinery or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Spring Airlines Co
Performance |
| Timeline |
| Shantui Construction |
| Spring Airlines |
Shantui Construction and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Spring Airlines
The main advantage of trading using opposite Shantui Construction and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Spring 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 Spring Airlines will offset losses from the drop in Spring Airlines' long position.The idea behind Shantui Construction Machinery and Spring Airlines Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Spring Airlines vs. BYD Co Ltd | Spring Airlines vs. China Mobile Limited | Spring Airlines vs. Agricultural Bank of | Spring Airlines vs. Industrial and Commercial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |