Correlation Between Guangzhou Haige and Spring Airlines
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By analyzing existing cross correlation between Guangzhou Haige Communications and Spring Airlines Co, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Spring Airlines.
Diversification Opportunities for Guangzhou Haige and Spring Airlines
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Spring is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Spring Airlines go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Spring Airlines
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.96 times more return on investment than Spring Airlines. However, Guangzhou Haige is 1.96 times more volatile than Spring Airlines Co. It trades about 0.12 of its potential returns per unit of risk. Spring Airlines Co is currently generating about 0.15 per unit of risk. If you would invest 1,099 in Guangzhou Haige Communications on August 25, 2024 and sell it today you would earn a total of 88.00 from holding Guangzhou Haige Communications or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Spring Airlines Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Spring Airlines |
Guangzhou Haige and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Spring Airlines
The main advantage of trading using opposite Guangzhou Haige and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Shanghai Rongtai Health | Guangzhou Haige vs. Shandong Sinoglory Health | Guangzhou Haige vs. Suzhou Mingzhi Technology | Guangzhou Haige vs. Yunnan Jianzhijia Health Chain |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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