Correlation Between Vats Liquor and Juneyao Airlines
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By analyzing existing cross correlation between Vats Liquor Chain and Juneyao Airlines, you can compare the effects of market volatilities on Vats Liquor 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 Vats Liquor with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Juneyao Airlines.
Diversification Opportunities for Vats Liquor and Juneyao Airlines
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vats and Juneyao is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Vats Liquor 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 Vats Liquor Chain 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 Vats Liquor i.e., Vats Liquor and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Vats Liquor and Juneyao Airlines
Assuming the 90 days trading horizon Vats Liquor Chain is expected to generate 1.42 times more return on investment than Juneyao Airlines. However, Vats Liquor is 1.42 times more volatile than Juneyao Airlines. It trades about -0.02 of its potential returns per unit of risk. Juneyao Airlines is currently generating about -0.02 per unit of risk. If you would invest 2,941 in Vats Liquor Chain on November 24, 2024 and sell it today you would lose (1,073) from holding Vats Liquor Chain or give up 36.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vats Liquor Chain vs. Juneyao Airlines
Performance |
Timeline |
Vats Liquor Chain |
Juneyao Airlines |
Vats Liquor and Juneyao Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vats Liquor and Juneyao Airlines
The main advantage of trading using opposite Vats Liquor and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor 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.Vats Liquor vs. Tongling Nonferrous Metals | ||
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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