Correlation Between Kweichow Moutai and Spring Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Spring Airlines Co, you can compare the effects of market volatilities on Kweichow Moutai 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 Kweichow Moutai with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Spring Airlines.
Diversification Opportunities for Kweichow Moutai and Spring Airlines
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Spring is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai 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 Kweichow Moutai 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 Kweichow Moutai 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 Kweichow Moutai i.e., Kweichow Moutai and Spring Airlines go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Spring Airlines
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Spring Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.24 times less risky than Spring Airlines. The stock trades about -0.09 of its potential returns per unit of risk. The Spring Airlines Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 5,610 in Spring Airlines Co on October 26, 2024 and sell it today you would lose (265.00) from holding Spring Airlines Co or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Spring Airlines Co
Performance |
| Timeline |
| Kweichow Moutai |
| Spring Airlines |
Kweichow Moutai and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Spring Airlines
The main advantage of trading using opposite Kweichow Moutai and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai 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.| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
| Spring Airlines vs. China Petroleum Chemical | Spring Airlines vs. PetroChina Co Ltd | Spring Airlines vs. China State Construction | Spring Airlines vs. China Railway 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |