Correlation Between Spring Airlines and Xiamen Goldenhome
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By analyzing existing cross correlation between Spring Airlines Co and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Spring Airlines and Xiamen Goldenhome 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 Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Xiamen Goldenhome.
Diversification Opportunities for Spring Airlines and Xiamen Goldenhome
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Spring and Xiamen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Spring Airlines i.e., Spring Airlines and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Spring Airlines and Xiamen Goldenhome
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.7 times more return on investment than Xiamen Goldenhome. However, Spring Airlines Co is 1.43 times less risky than Xiamen Goldenhome. It trades about 0.02 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.02 per unit of risk. If you would invest 5,385 in Spring Airlines Co on September 1, 2024 and sell it today you would earn a total of 317.00 from holding Spring Airlines Co or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Spring Airlines |
| Xiamen Goldenhome |
Spring Airlines and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Xiamen Goldenhome
The main advantage of trading using opposite Spring Airlines and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Xiamen Goldenhome 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 Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Spring Airlines vs. Shanghai Xinhua Media | Spring Airlines vs. GKHT Medical Technology | Spring Airlines vs. Dalian Zeus Entertainment | Spring Airlines vs. Ningbo David Medical |
| Xiamen Goldenhome vs. China Asset Management | Xiamen Goldenhome vs. Chison Medical Technologies | Xiamen Goldenhome vs. CICC Fund Management | Xiamen Goldenhome vs. GKHT Medical Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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