Correlation Between Gan Yuan and Spring Airlines
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By analyzing existing cross correlation between Gan Yuan Foods and Spring Airlines Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Spring Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Spring Airlines.
Diversification Opportunities for Gan Yuan and Spring Airlines
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Spring is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan 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 Gan Yuan 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 Gan Yuan 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 Gan Yuan i.e., Gan Yuan and Spring Airlines go up and down completely randomly.
Pair Corralation between Gan Yuan and Spring Airlines
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.37 times more return on investment than Spring Airlines. However, Gan Yuan is 1.37 times more volatile than Spring Airlines Co. It trades about 0.23 of its potential returns per unit of risk. Spring Airlines Co is currently generating about 0.11 per unit of risk. If you would invest 5,164 in Gan Yuan Foods on August 30, 2024 and sell it today you would earn a total of 2,679 from holding Gan Yuan Foods or generate 51.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gan Yuan Foods vs. Spring Airlines Co
Performance |
Timeline |
Gan Yuan Foods |
Spring Airlines |
Gan Yuan and Spring Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gan Yuan and Spring Airlines
The main advantage of trading using opposite Gan Yuan and Spring Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.Gan Yuan vs. Cultural Investment Holdings | Gan Yuan vs. Zhejiang Construction Investment | Gan Yuan vs. Chengdu Xingrong Investment | Gan Yuan vs. China Aluminum International |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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