Correlation Between Huitong Construction and Spring Airlines
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By analyzing existing cross correlation between Huitong Construction Group and Spring Airlines Co, you can compare the effects of market volatilities on Huitong Construction 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 Huitong Construction with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Spring Airlines.
Diversification Opportunities for Huitong Construction and Spring Airlines
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huitong and Spring is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Huitong Construction 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 Huitong Construction Group 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 Huitong Construction i.e., Huitong Construction and Spring Airlines go up and down completely randomly.
Pair Corralation between Huitong Construction and Spring Airlines
Assuming the 90 days trading horizon Huitong Construction is expected to generate 1.07 times less return on investment than Spring Airlines. In addition to that, Huitong Construction is 1.35 times more volatile than Spring Airlines Co. It trades about 0.1 of its total potential returns per unit of risk. Spring Airlines Co is currently generating about 0.15 per unit of volatility. 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 | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Huitong Construction Group vs. Spring Airlines Co
Performance |
| Timeline |
| Huitong Construction |
| Spring Airlines |
Huitong Construction and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huitong Construction and Spring Airlines
The main advantage of trading using opposite Huitong Construction and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction 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.| Huitong Construction vs. Ming Yang Smart | Huitong Construction vs. 159681 | Huitong Construction vs. 159005 | Huitong Construction vs. Loctek Ergonomic Technology |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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