Correlation Between Guangdong Shenglu and Spring Airlines
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Spring Airlines Co, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Spring Airlines.
Diversification Opportunities for Guangdong Shenglu and Spring Airlines
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Spring is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Spring Airlines go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Spring Airlines
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Spring Airlines. In addition to that, Guangdong Shenglu is 1.93 times more volatile than Spring Airlines Co. It trades about -0.03 of its total potential returns per unit of risk. Spring Airlines Co is currently generating about 0.03 per unit of volatility. If you would invest 5,290 in Spring Airlines Co on August 25, 2024 and sell it today you would earn a total of 508.00 from holding Spring Airlines Co or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Spring Airlines Co
Performance |
| Timeline |
| Guangdong Shenglu |
| Spring Airlines |
Guangdong Shenglu and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Spring Airlines
The main advantage of trading using opposite Guangdong Shenglu and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| Spring Airlines vs. TongFu Microelectronics Co | Spring Airlines vs. Guangdong Shenglu Telecommunication | Spring Airlines vs. Shanghai Zhangjiang Hi Tech | Spring Airlines vs. Guangzhou Haige Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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