Correlation Between Xizi Clean and Juneyao Airlines
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By analyzing existing cross correlation between Xizi Clean Energy and Juneyao Airlines, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Juneyao Airlines.
Diversification Opportunities for Xizi Clean and Juneyao Airlines
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Juneyao is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Xizi Clean and Juneyao Airlines
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Juneyao Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.37 times less risky than Juneyao Airlines. The stock trades about -0.04 of its potential returns per unit of risk. The Juneyao Airlines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,390 in Juneyao Airlines on September 18, 2024 and sell it today you would earn a total of 29.00 from holding Juneyao Airlines or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Juneyao Airlines
Performance |
| Timeline |
| Xizi Clean Energy |
| Juneyao Airlines |
Xizi Clean and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Juneyao Airlines
The main advantage of trading using opposite Xizi Clean and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
| Juneyao Airlines vs. China State Construction | Juneyao Airlines vs. Poly Real Estate | Juneyao Airlines vs. China Vanke Co | Juneyao Airlines vs. China Merchants Shekou |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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