Correlation Between Shanghai Ziyan and Spring Airlines
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Spring Airlines Co, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Spring Airlines.
Diversification Opportunities for Shanghai Ziyan and Spring Airlines
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Spring is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Spring Airlines go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Spring Airlines
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 1.58 times more return on investment than Spring Airlines. However, Shanghai Ziyan is 1.58 times more volatile than Spring Airlines Co. It trades about 0.01 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 1,758 in Shanghai Ziyan Foods on October 14, 2024 and sell it today you would lose (48.00) from holding Shanghai Ziyan Foods or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Spring Airlines Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Spring Airlines |
Shanghai Ziyan and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Spring Airlines
The main advantage of trading using opposite Shanghai Ziyan and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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