Correlation Between TongFu Microelectronics and Juneyao Airlines
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By analyzing existing cross correlation between TongFu Microelectronics Co and Juneyao Airlines, you can compare the effects of market volatilities on TongFu Microelectronics 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 TongFu Microelectronics with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Juneyao Airlines.
Diversification Opportunities for TongFu Microelectronics and Juneyao Airlines
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TongFu and Juneyao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and TongFu Microelectronics 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 TongFu Microelectronics Co 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 TongFu Microelectronics i.e., TongFu Microelectronics and Juneyao Airlines go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Juneyao Airlines
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 1.5 times more return on investment than Juneyao Airlines. However, TongFu Microelectronics is 1.5 times more volatile than Juneyao Airlines. It trades about 0.06 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.03 per unit of risk. If you would invest 2,234 in TongFu Microelectronics Co on August 25, 2024 and sell it today you would earn a total of 732.00 from holding TongFu Microelectronics Co or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Juneyao Airlines
Performance |
| Timeline |
| TongFu Microelectronics |
| Juneyao Airlines |
TongFu Microelectronics and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Juneyao Airlines
The main advantage of trading using opposite TongFu Microelectronics and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics 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.| TongFu Microelectronics vs. Lutian Machinery Co | TongFu Microelectronics vs. China Longyuan Power | TongFu Microelectronics vs. Changshu Tongrun Auto | TongFu Microelectronics vs. PetroChina Co Ltd |
| Juneyao Airlines vs. BYD Co Ltd | Juneyao Airlines vs. China Mobile Limited | Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. Industrial and Commercial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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