Correlation Between China Satellite and Spring Airlines
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By analyzing existing cross correlation between China Satellite Communications and Spring Airlines Co, you can compare the effects of market volatilities on China Satellite 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 China Satellite with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Spring Airlines.
Diversification Opportunities for China Satellite and Spring Airlines
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Spring is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and China Satellite 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 China Satellite Communications 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 China Satellite i.e., China Satellite and Spring Airlines go up and down completely randomly.
Pair Corralation between China Satellite and Spring Airlines
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.91 times more return on investment than Spring Airlines. However, China Satellite is 1.91 times more volatile than Spring Airlines Co. It trades about 0.04 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 1,228 in China Satellite Communications on October 11, 2024 and sell it today you would earn a total of 668.00 from holding China Satellite Communications or generate 54.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Spring Airlines Co
Performance |
| Timeline |
| China Satellite Comm |
| Spring Airlines |
China Satellite and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Spring Airlines
The main advantage of trading using opposite China Satellite and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite 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.| China Satellite vs. Yunnan Jianzhijia Health Chain | China Satellite vs. Goodwill E Health | China Satellite vs. HeBei Jinniu Chemical | China Satellite vs. Lotus Health Group |
| Spring Airlines vs. Jinlong Machinery Electronic | Spring Airlines vs. Allied Machinery Co | Spring Airlines vs. Shenzhen Glory Medical | Spring Airlines vs. Innovative Medical Management |
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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