Correlation Between Suzhou Xingye and Spring Airlines
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By analyzing existing cross correlation between Suzhou Xingye Material and Spring Airlines Co, you can compare the effects of market volatilities on Suzhou Xingye 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 Suzhou Xingye with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Spring Airlines.
Diversification Opportunities for Suzhou Xingye and Spring Airlines
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Spring is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Spring Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Airlines and Suzhou Xingye 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 Suzhou Xingye Material 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 Suzhou Xingye i.e., Suzhou Xingye and Spring Airlines go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Spring Airlines
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 2.75 times more return on investment than Spring Airlines. However, Suzhou Xingye is 2.75 times more volatile than Spring Airlines Co. It trades about 0.19 of its potential returns per unit of risk. Spring Airlines Co is currently generating about -0.05 per unit of risk. If you would invest 841.00 in Suzhou Xingye Material on November 6, 2024 and sell it today you would earn a total of 466.00 from holding Suzhou Xingye Material or generate 55.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Spring Airlines Co
Performance |
| Timeline |
| Suzhou Xingye Material |
| Spring Airlines |
Suzhou Xingye and Spring Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Spring Airlines
The main advantage of trading using opposite Suzhou Xingye and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye 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.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
| Spring Airlines vs. Allgens Medical Technology | Spring Airlines vs. Jiangsu Yanghe Brewery | Spring Airlines vs. Heilongjiang Publishing Media | Spring Airlines vs. Touchstone International Medical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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