Correlation Between Spring Airlines and XiaMen HongXin
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By analyzing existing cross correlation between Spring Airlines Co and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Spring Airlines and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and XiaMen HongXin.
Diversification Opportunities for Spring Airlines and XiaMen HongXin
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spring and XiaMen is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Spring Airlines i.e., Spring Airlines and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Spring Airlines and XiaMen HongXin
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the XiaMen HongXin. But the stock apears to be less risky and, when comparing its historical volatility, Spring Airlines Co is 3.09 times less risky than XiaMen HongXin. The stock trades about -0.02 of its potential returns per unit of risk. The XiaMen HongXin Electron tech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,756 in XiaMen HongXin Electron tech on October 25, 2024 and sell it today you would earn a total of 491.00 from holding XiaMen HongXin Electron tech or generate 27.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Spring Airlines |
| XiaMen HongXin Electron |
Spring Airlines and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and XiaMen HongXin
The main advantage of trading using opposite Spring Airlines and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Spring Airlines vs. Kweichow Moutai Co | Spring Airlines vs. Contemporary Amperex Technology | Spring Airlines vs. Beijing Roborock Technology | Spring Airlines vs. BYD Co Ltd |
| XiaMen HongXin vs. Kweichow Moutai Co | XiaMen HongXin vs. NAURA Technology Group | XiaMen HongXin vs. APT Medical | XiaMen HongXin vs. BYD Co Ltd |
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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