Correlation Between China Eastern and Spring Airlines
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By analyzing existing cross correlation between China Eastern Airlines and Spring Airlines Co, you can compare the effects of market volatilities on China Eastern 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 China Eastern with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Spring Airlines.
Diversification Opportunities for China Eastern and Spring Airlines
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Spring is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and China Eastern 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 China Eastern Airlines 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 China Eastern i.e., China Eastern and Spring Airlines go up and down completely randomly.
Pair Corralation between China Eastern and Spring Airlines
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 1.34 times more return on investment than Spring Airlines. However, China Eastern is 1.34 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 -0.12 per unit of risk. If you would invest 385.00 in China Eastern Airlines on November 4, 2024 and sell it today you would earn a total of 3.00 from holding China Eastern Airlines or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Spring Airlines Co
Performance |
| Timeline |
| China Eastern Airlines |
| Spring Airlines |
China Eastern and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Spring Airlines
The main advantage of trading using opposite China Eastern and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern 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.| China Eastern vs. Easyhome New Retail | China Eastern vs. Vohringer Home Technology | China Eastern vs. Nanjing OLO Home | China Eastern vs. Sichuan Fulin Transportation |
| Spring Airlines vs. CICC Fund Management | Spring Airlines vs. Shanghai Yaoji Playing | Spring Airlines vs. Harvest Fund Management | Spring Airlines vs. Lootom Telcovideo Network |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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