Correlation Between Spring Airlines and Shanghai OPM
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By analyzing existing cross correlation between Spring Airlines Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Spring Airlines and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Shanghai OPM.
Diversification Opportunities for Spring Airlines and Shanghai OPM
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spring and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Spring Airlines i.e., Spring Airlines and Shanghai OPM go up and down completely randomly.
Pair Corralation between Spring Airlines and Shanghai OPM
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.52 times more return on investment than Shanghai OPM. However, Spring Airlines Co is 1.91 times less risky than Shanghai OPM. It trades about 0.15 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.06 per unit of risk. If you would invest 5,583 in Spring Airlines Co on September 14, 2024 and sell it today you would earn a total of 277.00 from holding Spring Airlines Co or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Spring Airlines |
| Shanghai OPM Biosciences |
Spring Airlines and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Shanghai OPM
The main advantage of trading using opposite Spring Airlines and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM's long position.| Spring Airlines vs. Jinhui Liquor Co | Spring Airlines vs. Lander Sports Development | Spring Airlines vs. Shuhua Sports Co | Spring Airlines vs. Chengdu B ray Media |
| Shanghai OPM vs. Beijing Yanjing Brewery | Shanghai OPM vs. ZYF Lopsking Aluminum | Shanghai OPM vs. Spring Airlines Co | Shanghai OPM vs. Hefei Metalforming Mach |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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