Correlation Between CITIC Metal and Spring Airlines
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By analyzing existing cross correlation between CITIC Metal Co and Spring Airlines Co, you can compare the effects of market volatilities on CITIC Metal and Spring Airlines 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 CITIC Metal with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Spring Airlines.
Diversification Opportunities for CITIC Metal and Spring Airlines
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Spring is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and CITIC Metal 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 CITIC Metal Co are associated (or correlated) with Spring Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Airlines has no effect on the direction of CITIC Metal i.e., CITIC Metal and Spring Airlines go up and down completely randomly.
Pair Corralation between CITIC Metal and Spring Airlines
Assuming the 90 days trading horizon CITIC Metal is expected to generate 4.42 times less return on investment than Spring Airlines. But when comparing it to its historical volatility, CITIC Metal Co is 1.06 times less risky than Spring Airlines. It trades about 0.04 of its potential returns per unit of risk. Spring Airlines Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,489 in Spring Airlines Co on August 25, 2024 and sell it today you would earn a total of 309.00 from holding Spring Airlines Co or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Spring Airlines Co
Performance |
| Timeline |
| CITIC Metal |
| Spring Airlines |
CITIC Metal and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Spring Airlines
The main advantage of trading using opposite CITIC Metal and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Spring Airlines 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 Spring Airlines will offset losses from the drop in Spring Airlines' long position.| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
| Spring Airlines vs. TongFu Microelectronics Co | Spring Airlines vs. Guangdong Shenglu Telecommunication | Spring Airlines vs. Shanghai Zhangjiang Hi Tech | Spring Airlines vs. Guangzhou Haige Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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