Correlation Between Xiamen Bank and Spring Airlines
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By analyzing existing cross correlation between Xiamen Bank Co and Spring Airlines Co, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Spring Airlines.
Diversification Opportunities for Xiamen Bank and Spring Airlines
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Spring is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank i.e., Xiamen Bank and Spring Airlines go up and down completely randomly.
Pair Corralation between Xiamen Bank and Spring Airlines
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.95 times more return on investment than Spring Airlines. However, Xiamen Bank Co is 1.05 times less risky than Spring Airlines. It trades about 0.03 of its potential returns per unit of risk. Spring Airlines Co is currently generating about -0.01 per unit of risk. If you would invest 501.00 in Xiamen Bank Co on October 14, 2024 and sell it today you would earn a total of 29.00 from holding Xiamen Bank Co or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Spring Airlines Co
Performance |
| Timeline |
| Xiamen Bank |
| Spring Airlines |
Xiamen Bank and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Spring Airlines
The main advantage of trading using opposite Xiamen Bank and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. JiShi Media Co | Xiamen Bank vs. Zhejiang Qianjiang Motorcycle | Xiamen Bank vs. Guangdong Jinma Entertainment | Xiamen Bank vs. Thinkingdom Media Group |
| Spring Airlines vs. Jinlong Machinery Electronic | Spring Airlines vs. Gansu Huangtai Wine marketing | Spring Airlines vs. Hunan Tyen Machinery | Spring Airlines vs. Lutian Machinery Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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