Correlation Between Spring Airlines and Beijing Shunxin
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By analyzing existing cross correlation between Spring Airlines Co and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Spring Airlines and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Beijing Shunxin.
Diversification Opportunities for Spring Airlines and Beijing Shunxin
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spring and Beijing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Spring Airlines i.e., Spring Airlines and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Spring Airlines and Beijing Shunxin
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.65 times more return on investment than Beijing Shunxin. However, Spring Airlines Co is 1.55 times less risky than Beijing Shunxin. It trades about -0.19 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.42 per unit of risk. If you would invest 5,624 in Spring Airlines Co on October 16, 2024 and sell it today you would lose (294.00) from holding Spring Airlines Co or give up 5.23% 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. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Spring Airlines |
| Beijing Shunxin Agri |
Spring Airlines and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Beijing Shunxin
The main advantage of trading using opposite Spring Airlines and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Spring Airlines vs. Guangdong Qunxing Toys | Spring Airlines vs. Zhangjiagang Freetrade Science | Spring Airlines vs. Anhui Jianghuai Automobile | Spring Airlines vs. Haima Automobile Group |
| Beijing Shunxin vs. China Publishing Media | Beijing Shunxin vs. Omnijoi Media Corp | Beijing Shunxin vs. Anhui Deli Household | Beijing Shunxin vs. Gansu Huangtai Wine marketing |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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