Correlation Between Bank of Suzhou and Spring Airlines
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By analyzing existing cross correlation between Bank of Suzhou and Spring Airlines Co, you can compare the effects of market volatilities on Bank of Suzhou 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 Bank of Suzhou with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Spring Airlines.
Diversification Opportunities for Bank of Suzhou and Spring Airlines
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Spring is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Bank of Suzhou 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 Bank of Suzhou 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 Bank of Suzhou i.e., Bank of Suzhou and Spring Airlines go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Spring Airlines
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.79 times more return on investment than Spring Airlines. However, Bank of Suzhou is 1.26 times less risky than Spring Airlines. It trades about 0.02 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 802.00 in Bank of Suzhou on October 14, 2024 and sell it today you would earn a total of 2.00 from holding Bank of Suzhou or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Spring Airlines Co
Performance |
| Timeline |
| Bank of Suzhou |
| Spring Airlines |
Bank of Suzhou and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Spring Airlines
The main advantage of trading using opposite Bank of Suzhou and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou 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.| Bank of Suzhou vs. Sichuan Fulin Transportation | Bank of Suzhou vs. Emdoor Information Co | Bank of Suzhou vs. Sublime China Information | Bank of Suzhou vs. Jinxiandai Information Industry |
| Spring Airlines vs. Jinlong Machinery Electronic | Spring Airlines vs. Gansu Huangtai Wine marketing | Spring Airlines vs. Hunan Tyen Machinery | Spring Airlines vs. Lutian Machinery Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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