Correlation Between Guangzhou Jointas and Spring Airlines
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Spring Airlines Co, you can compare the effects of market volatilities on Guangzhou Jointas 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 Jointas with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Spring Airlines.
Diversification Opportunities for Guangzhou Jointas and Spring Airlines
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Spring is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical 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 Jointas 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 Jointas Chemical 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 Jointas i.e., Guangzhou Jointas and Spring Airlines go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Spring Airlines
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 1.45 times more return on investment than Spring Airlines. However, Guangzhou Jointas is 1.45 times more volatile than Spring Airlines Co. It trades about 0.05 of its potential returns per unit of risk. Spring Airlines Co is currently generating about -0.2 per unit of risk. If you would invest 515.00 in Guangzhou Jointas Chemical on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Guangzhou Jointas Chemical or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Spring Airlines Co
Performance |
| Timeline |
| Guangzhou Jointas |
| Spring Airlines |
Guangzhou Jointas and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Spring Airlines
The main advantage of trading using opposite Guangzhou Jointas and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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 Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| Spring Airlines vs. GRIPM Advanced Materials | Spring Airlines vs. Qingdao Foods Co | Spring Airlines vs. Suzhou Xingye Material | Spring Airlines vs. Eastroc Beverage Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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