Correlation Between East Money and Spring Airlines
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By analyzing existing cross correlation between East Money Information and Spring Airlines Co, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Spring Airlines.
Diversification Opportunities for East Money and Spring Airlines
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between East and Spring is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and East Money 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 East Money Information 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 East Money i.e., East Money and Spring Airlines go up and down completely randomly.
Pair Corralation between East Money and Spring Airlines
Assuming the 90 days trading horizon East Money Information is expected to generate 1.79 times more return on investment than Spring Airlines. However, East Money is 1.79 times more volatile than Spring Airlines Co. It trades about 0.03 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 1,895 in East Money Information on October 16, 2024 and sell it today you would earn a total of 317.00 from holding East Money Information or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Spring Airlines Co
Performance |
| Timeline |
| East Money Information |
| Spring Airlines |
East Money and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Spring Airlines
The main advantage of trading using opposite East Money and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. GuoChuang Software Co | East Money vs. Chongqing Shunbo Aluminum | East Money vs. Jiaozuo Wanfang Aluminum | East Money vs. Dhc Software Co |
| Spring Airlines vs. Guangdong Qunxing Toys | Spring Airlines vs. Zhangjiagang Freetrade Science | Spring Airlines vs. Anhui Jianghuai Automobile | Spring Airlines vs. Haima Automobile 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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