Correlation Between Beijing Kaiwen and Juneyao Airlines
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By analyzing existing cross correlation between Beijing Kaiwen Education and Juneyao Airlines, you can compare the effects of market volatilities on Beijing Kaiwen 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 Beijing Kaiwen with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Juneyao Airlines.
Diversification Opportunities for Beijing Kaiwen and Juneyao Airlines
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Juneyao is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Beijing Kaiwen 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 Beijing Kaiwen Education 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 Beijing Kaiwen i.e., Beijing Kaiwen and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Juneyao Airlines
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 1.96 times less return on investment than Juneyao Airlines. In addition to that, Beijing Kaiwen is 1.89 times more volatile than Juneyao Airlines. It trades about 0.03 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about 0.09 per unit of volatility. If you would invest 1,362 in Juneyao Airlines on August 30, 2024 and sell it today you would earn a total of 104.00 from holding Juneyao Airlines or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Juneyao Airlines
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Juneyao Airlines |
Beijing Kaiwen and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Juneyao Airlines
The main advantage of trading using opposite Beijing Kaiwen and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen 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.| Beijing Kaiwen vs. Biwin Storage Technology | Beijing Kaiwen vs. PetroChina Co Ltd | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. China Construction Bank |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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