Correlation Between Spring Airlines and Jinhe Biotechnology
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By analyzing existing cross correlation between Spring Airlines Co and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Spring Airlines and Jinhe Biotechnology 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 Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Jinhe Biotechnology.
Diversification Opportunities for Spring Airlines and Jinhe Biotechnology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spring and Jinhe is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Spring Airlines i.e., Spring Airlines and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Spring Airlines and Jinhe Biotechnology
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.66 times more return on investment than Jinhe Biotechnology. However, Spring Airlines Co is 1.53 times less risky than Jinhe Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.01 per unit of risk. If you would invest 5,180 in Spring Airlines Co on September 4, 2024 and sell it today you would earn a total of 466.00 from holding Spring Airlines Co or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Spring Airlines |
| Jinhe Biotechnology |
Spring Airlines and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Jinhe Biotechnology
The main advantage of trading using opposite Spring Airlines and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Spring Airlines vs. Agricultural Bank of | Spring Airlines vs. Industrial and Commercial | Spring Airlines vs. Bank of China | Spring Airlines vs. China Construction Bank |
| Jinhe Biotechnology vs. Sichuan Fulin Transportation | Jinhe Biotechnology vs. Fujian Longzhou Transportation | Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Spring Airlines Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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