Correlation Between Ningxia Younglight and Juneyao Airlines
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Juneyao Airlines, you can compare the effects of market volatilities on Ningxia Younglight 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 Ningxia Younglight with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Juneyao Airlines.
Diversification Opportunities for Ningxia Younglight and Juneyao Airlines
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Juneyao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Ningxia Younglight 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 Ningxia Younglight Chemicals 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 Ningxia Younglight i.e., Ningxia Younglight and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Juneyao Airlines
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.84 times more return on investment than Juneyao Airlines. However, Ningxia Younglight is 1.84 times more volatile than Juneyao Airlines. It trades about 0.12 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.09 per unit of risk. If you would invest 700.00 in Ningxia Younglight Chemicals on August 30, 2024 and sell it today you would earn a total of 128.00 from holding Ningxia Younglight Chemicals or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Juneyao Airlines
Performance |
| Timeline |
| Ningxia Younglight |
| Juneyao Airlines |
Ningxia Younglight and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Juneyao Airlines
The main advantage of trading using opposite Ningxia Younglight and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight 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.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Juneyao Airlines vs. Ming Yang Smart | Juneyao Airlines vs. 159681 | Juneyao Airlines vs. 159005 | Juneyao Airlines vs. Loctek Ergonomic Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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