Correlation Between Sinofibers Technology and Spring Airlines
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By analyzing existing cross correlation between Sinofibers Technology Co and Spring Airlines Co, you can compare the effects of market volatilities on Sinofibers Technology 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 Sinofibers Technology with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Spring Airlines.
Diversification Opportunities for Sinofibers Technology and Spring Airlines
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sinofibers and Spring is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Sinofibers Technology 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 Sinofibers Technology Co 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 Sinofibers Technology i.e., Sinofibers Technology and Spring Airlines go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Spring Airlines
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Spring Airlines. In addition to that, Sinofibers Technology is 1.62 times more volatile than Spring Airlines Co. It trades about -0.06 of its total potential returns per unit of risk. Spring Airlines Co is currently generating about -0.02 per unit of volatility. If you would invest 5,486 in Spring Airlines Co on October 25, 2024 and sell it today you would lose (180.00) from holding Spring Airlines Co or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Spring Airlines Co
Performance |
| Timeline |
| Sinofibers Technology |
| Spring Airlines |
Sinofibers Technology and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Spring Airlines
The main advantage of trading using opposite Sinofibers Technology and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology 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.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Rongsheng Petrochemical Co |
| Spring Airlines vs. Kweichow Moutai Co | Spring Airlines vs. Contemporary Amperex Technology | Spring Airlines vs. Beijing Roborock Technology | Spring Airlines vs. BYD Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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