Correlation Between Guosheng Financial and Juneyao Airlines
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By analyzing existing cross correlation between Guosheng Financial Holding and Juneyao Airlines, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Juneyao Airlines.
Diversification Opportunities for Guosheng Financial and Juneyao Airlines
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guosheng and Juneyao is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Guosheng Financial and Juneyao Airlines
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.75 times more return on investment than Juneyao Airlines. However, Guosheng Financial is 1.75 times more volatile than Juneyao Airlines. It trades about -0.03 of its potential returns per unit of risk. Juneyao Airlines is currently generating about -0.11 per unit of risk. If you would invest 1,393 in Guosheng Financial Holding on October 30, 2024 and sell it today you would lose (53.00) from holding Guosheng Financial Holding or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Juneyao Airlines
Performance |
| Timeline |
| Guosheng Financial |
| Juneyao Airlines |
Guosheng Financial and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Juneyao Airlines
The main advantage of trading using opposite Guosheng Financial and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. Wintao Communications Co | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. China Satellite Communications | Guosheng Financial vs. Pengxin International Mining |
| Juneyao Airlines vs. GRINM Semiconductor Materials | Juneyao Airlines vs. Touchstone International Medical | Juneyao Airlines vs. Union Semiconductor Co | Juneyao Airlines vs. Will Semiconductor Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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