Correlation Between Spring Airlines and Dongfeng Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spring Airlines Co and Dongfeng Automobile Co, you can compare the effects of market volatilities on Spring Airlines and Dongfeng Automobile 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 Spring Airlines with a short position of Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Airlines and Dongfeng Automobile.
Diversification Opportunities for Spring Airlines and Dongfeng Automobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spring and Dongfeng is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Spring Airlines Co and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile and Spring Airlines 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 Spring Airlines Co are associated (or correlated) with Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Spring Airlines i.e., Spring Airlines and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Spring Airlines and Dongfeng Automobile
Assuming the 90 days trading horizon Spring Airlines Co is expected to generate 0.61 times more return on investment than Dongfeng Automobile. However, Spring Airlines Co is 1.65 times less risky than Dongfeng Automobile. It trades about 0.0 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 5,716 in Spring Airlines Co on September 26, 2024 and sell it today you would lose (16.00) from holding Spring Airlines Co or give up 0.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Spring Airlines Co vs. Dongfeng Automobile Co
Performance |
Timeline |
Spring Airlines |
Dongfeng Automobile |
Spring Airlines and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spring Airlines and Dongfeng Automobile
The main advantage of trading using opposite Spring Airlines and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spring Airlines position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.Spring Airlines vs. Hengli Industrial Development | Spring Airlines vs. Tengda Construction Group | Spring Airlines vs. Ningxia Xiaoming Agriculture | Spring Airlines vs. Rongcheer Industrial Technology |
Dongfeng Automobile vs. Chengtun Mining Group | Dongfeng Automobile vs. CICT Mobile Communication | Dongfeng Automobile vs. Dr Peng Telecom | Dongfeng Automobile vs. Jilin Jlu Communication |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |