Correlation Between Spring Airlines and Suzhou Mingzhi
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By analyzing existing cross correlation between Spring Airlines Co and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Spring Airlines and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Suzhou Mingzhi.
Diversification Opportunities for Spring Airlines and Suzhou Mingzhi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spring and Suzhou is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Spring Airlines i.e., Spring Airlines and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Spring Airlines and Suzhou Mingzhi
Assuming the 90 days trading horizon Spring Airlines Co is expected to under-perform the Suzhou Mingzhi. But the stock apears to be less risky and, when comparing its historical volatility, Spring Airlines Co is 1.81 times less risky than Suzhou Mingzhi. The stock trades about -0.02 of its potential returns per unit of risk. The Suzhou Mingzhi Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,769 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 86.00 from holding Suzhou Mingzhi Technology or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spring Airlines Co vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Spring Airlines |
| Suzhou Mingzhi Technology |
Spring Airlines and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spring Airlines and Suzhou Mingzhi
The main advantage of trading using opposite Spring Airlines and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Spring Airlines vs. Kweichow Moutai Co | Spring Airlines vs. Contemporary Amperex Technology | Spring Airlines vs. Beijing Roborock Technology | Spring Airlines vs. BYD Co Ltd |
| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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