Correlation Between Guangzhou Dongfang and Juneyao Airlines
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Juneyao Airlines, you can compare the effects of market volatilities on Guangzhou Dongfang and Juneyao 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 Guangzhou Dongfang with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Juneyao Airlines.
Diversification Opportunities for Guangzhou Dongfang and Juneyao Airlines
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Juneyao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel are associated (or correlated) with Juneyao Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juneyao Airlines has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Juneyao Airlines
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.04 times more return on investment than Juneyao Airlines. However, Guangzhou Dongfang is 1.04 times more volatile than Juneyao Airlines. It trades about 0.08 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.05 per unit of risk. If you would invest 858.00 in Guangzhou Dongfang Hotel on September 5, 2024 and sell it today you would earn a total of 200.00 from holding Guangzhou Dongfang Hotel or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Juneyao Airlines
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Juneyao Airlines |
Guangzhou Dongfang and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Juneyao Airlines
The main advantage of trading using opposite Guangzhou Dongfang and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Juneyao 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 Juneyao Airlines will offset losses from the drop in Juneyao Airlines' long position.| Guangzhou Dongfang vs. Biwin Storage Technology | Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. China Construction Bank |
| Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Bank of China | Juneyao Airlines vs. China Construction Bank |
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 Positions Ratings module to 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.
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