Correlation Between Xiamen Goldenhome and Spring Airlines
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Spring Airlines Co, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Goldenhome with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Spring Airlines.
Diversification Opportunities for Xiamen Goldenhome and Spring Airlines
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Spring is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Goldenhome 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 Goldenhome 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 Goldenhome i.e., Xiamen Goldenhome and Spring Airlines go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Spring Airlines
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Spring Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.3 times less risky than Spring Airlines. The stock trades about -0.16 of its potential returns per unit of risk. The Spring Airlines Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 5,398 in Spring Airlines Co on November 27, 2024 and sell it today you would lose (151.00) from holding Spring Airlines Co or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Spring Airlines Co
Performance |
| Timeline |
| Xiamen Goldenhome |
| Spring Airlines |
Xiamen Goldenhome and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Spring Airlines
The main advantage of trading using opposite Xiamen Goldenhome and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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 Goldenhome vs. Chison Medical Technologies | Xiamen Goldenhome vs. CareRay Digital Medical | Xiamen Goldenhome vs. Nanjing OLO Home | Xiamen Goldenhome vs. Suofeiya Home Collection |
| Spring Airlines vs. Shengda Mining Co | Spring Airlines vs. Shaanxi Construction Machinery | Spring Airlines vs. Xingguang Agricultural Mach | Spring Airlines vs. Jinling Hotel Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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