Correlation Between Chenzhou Jingui and Juneyao Airlines
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Juneyao Airlines, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Juneyao Airlines.
Diversification Opportunities for Chenzhou Jingui and Juneyao Airlines
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chenzhou and Juneyao is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Juneyao Airlines
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to under-perform the Juneyao Airlines. In addition to that, Chenzhou Jingui is 1.14 times more volatile than Juneyao Airlines. It trades about -0.35 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about -0.35 per unit of volatility. If you would invest 1,419 in Juneyao Airlines on October 16, 2024 and sell it today you would lose (150.00) from holding Juneyao Airlines or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Juneyao Airlines
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Juneyao Airlines |
Chenzhou Jingui and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Juneyao Airlines
The main advantage of trading using opposite Chenzhou Jingui and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.| Chenzhou Jingui vs. Shaanxi Construction Machinery | Chenzhou Jingui vs. Qingdao Foods Co | Chenzhou Jingui vs. Guangzhou KDT Machinery | Chenzhou Jingui vs. Zhongshan Public Utilities |
| Juneyao Airlines vs. Fuda Alloy Materials | Juneyao Airlines vs. Chenzhou Jingui Silver | Juneyao Airlines vs. Suzhou Xingye Material | Juneyao Airlines vs. Uroica Mining Safety |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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