Correlation Between Jinlong Machinery and Spring Airlines
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Spring Airlines Co, you can compare the effects of market volatilities on Jinlong Machinery 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 Jinlong Machinery with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Spring Airlines.
Diversification Opportunities for Jinlong Machinery and Spring Airlines
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinlong and Spring is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Jinlong Machinery 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 Jinlong Machinery Electronic 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 Jinlong Machinery i.e., Jinlong Machinery and Spring Airlines go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Spring Airlines
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Spring Airlines. In addition to that, Jinlong Machinery is 2.74 times more volatile than Spring Airlines Co. It trades about -0.27 of its total potential returns per unit of risk. Spring Airlines Co is currently generating about -0.11 per unit of volatility. If you would invest 5,850 in Spring Airlines Co on October 11, 2024 and sell it today you would lose (209.00) from holding Spring Airlines Co or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Spring Airlines Co
Performance |
| Timeline |
| Jinlong Machinery |
| Spring Airlines |
Jinlong Machinery and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Spring Airlines
The main advantage of trading using opposite Jinlong Machinery and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery 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.| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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