Correlation Between Spring Airlines and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spring Airlines Co and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Spring Airlines and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Chengdu Kanghua.
Diversification Opportunities for Spring Airlines and Chengdu Kanghua
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spring and Chengdu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Spring Airlines i.e., Spring Airlines and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Spring Airlines and Chengdu Kanghua
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the Chengdu Kanghua. In addition to that, Spring Airlines is 1.17 times more volatile than Chengdu Kanghua Biological. It trades about -0.12 of its total potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.03 per unit of volatility. If you would invest 5,178 in Chengdu Kanghua Biological on November 4, 2024 and sell it today you would lose (52.00) from holding Chengdu Kanghua Biological or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Spring Airlines |
| Chengdu Kanghua Biol |
Spring Airlines and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Chengdu Kanghua
The main advantage of trading using opposite Spring Airlines and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Spring Airlines vs. CICC Fund Management | Spring Airlines vs. Shanghai Yaoji Playing | Spring Airlines vs. Harvest Fund Management | Spring Airlines vs. Lootom Telcovideo Network |
| Chengdu Kanghua vs. Baoding Dongli Machinery | Chengdu Kanghua vs. Marssenger Kitchenware Co | Chengdu Kanghua vs. Shantui Construction Machinery | Chengdu Kanghua vs. Yindu Kitchen Equipment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |