Correlation Between Spring Airlines and Zhejiang Yayi
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By analyzing existing cross correlation between Spring Airlines Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Spring Airlines and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Zhejiang Yayi.
Diversification Opportunities for Spring Airlines and Zhejiang Yayi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spring and Zhejiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Spring Airlines i.e., Spring Airlines and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Spring Airlines and Zhejiang Yayi
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.62 times more return on investment than Zhejiang Yayi. However, Spring Airlines Co is 1.61 times less risky than Zhejiang Yayi. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about -0.01 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Spring Airlines |
| Zhejiang Yayi Metal |
Spring Airlines and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Zhejiang Yayi
The main advantage of trading using opposite Spring Airlines and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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