Correlation Between Spring Airlines and Haima Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spring Airlines Co and Haima Automobile Group, you can compare the effects of market volatilities on Spring Airlines and Haima Automobile 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 Spring Airlines with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Haima Automobile.
Diversification Opportunities for Spring Airlines and Haima Automobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spring and Haima is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Spring Airlines 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 Spring Airlines Co are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Spring Airlines i.e., Spring Airlines and Haima Automobile go up and down completely randomly.
Pair Corralation between Spring Airlines and Haima Automobile
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Spring Airlines Co is 2.03 times less risky than Haima Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Haima Automobile Group on October 29, 2024 and sell it today you would lose (100.00) from holding Haima Automobile Group or give up 19.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Haima Automobile Group
Performance |
| Timeline |
| Spring Airlines |
| Haima Automobile |
Spring Airlines and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Haima Automobile
The main advantage of trading using opposite Spring Airlines and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Spring Airlines vs. Western Metal Materials | Spring Airlines vs. Beijing Enlight Media | Spring Airlines vs. Anhui Transport Consulting | Spring Airlines vs. Wasu Media Holding |
| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |