Correlation Between Spring Airlines and Dongxing Sec
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spring Airlines Co and Dongxing Sec Co, you can compare the effects of market volatilities on Spring Airlines and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Dongxing Sec.
Diversification Opportunities for Spring Airlines and Dongxing Sec
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spring and Dongxing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Spring Airlines i.e., Spring Airlines and Dongxing Sec go up and down completely randomly.
Pair Corralation between Spring Airlines and Dongxing Sec
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.43 times more return on investment than Dongxing Sec. However, Spring Airlines Co is 2.32 times less risky than Dongxing Sec. It trades about -0.01 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.08 per unit of risk. If you would invest 5,684 in Spring Airlines Co on September 4, 2024 and sell it today you would lose (38.00) from holding Spring Airlines Co or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Dongxing Sec Co
Performance |
| Timeline |
| Spring Airlines |
| Dongxing Sec |
Spring Airlines and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Dongxing Sec
The main advantage of trading using opposite Spring Airlines and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec'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 |
| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |