Correlation Between Nanjing Putian and Spring Airlines
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Spring Airlines Co, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Spring Airlines.
Diversification Opportunities for Nanjing Putian and Spring Airlines
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and Spring is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Spring Airlines go up and down completely randomly.
Pair Corralation between Nanjing Putian and Spring Airlines
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.01 times more return on investment than Spring Airlines. However, Nanjing Putian is 2.01 times more volatile than Spring Airlines Co. It trades about 0.02 of its potential returns per unit of risk. Spring Airlines Co is currently generating about -0.01 per unit of risk. If you would invest 324.00 in Nanjing Putian Telecommunications on October 11, 2024 and sell it today you would earn a total of 31.00 from holding Nanjing Putian Telecommunications or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Spring Airlines Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Spring Airlines |
Nanjing Putian and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Spring Airlines
The main advantage of trading using opposite Nanjing Putian and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Cultural Investment Holdings | Nanjing Putian vs. Jiangsu Yanghe Brewery | Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Dareway Software Co |
| Spring Airlines vs. Jinlong Machinery Electronic | Spring Airlines vs. Allied Machinery Co | Spring Airlines vs. Shenzhen Glory Medical | Spring Airlines vs. Innovative Medical Management |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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