Correlation Between Spring Airlines and Hubei Forbon
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By analyzing existing cross correlation between Spring Airlines Co and Hubei Forbon Technology, you can compare the effects of market volatilities on Spring Airlines and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Hubei Forbon.
Diversification Opportunities for Spring Airlines and Hubei Forbon
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spring and Hubei is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Spring Airlines i.e., Spring Airlines and Hubei Forbon go up and down completely randomly.
Pair Corralation between Spring Airlines and Hubei Forbon
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.6 times more return on investment than Hubei Forbon. However, Spring Airlines Co is 1.66 times less risky than Hubei Forbon. It trades about 0.04 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.0 per unit of risk. If you would invest 5,610 in Spring Airlines Co on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Spring Airlines Co or generate 1.21% 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. Hubei Forbon Technology
Performance |
| Timeline |
| Spring Airlines |
| Hubei Forbon Technology |
Spring Airlines and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Hubei Forbon
The main advantage of trading using opposite Spring Airlines and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Spring Airlines vs. BYD Co Ltd | Spring Airlines vs. China Mobile Limited | Spring Airlines vs. Agricultural Bank of | Spring Airlines vs. Industrial and Commercial |
| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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