Correlation Between Shandong Sanyuan and Juneyao Airlines
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Juneyao Airlines, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Juneyao Airlines.
Diversification Opportunities for Shandong Sanyuan and Juneyao Airlines
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Juneyao is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Juneyao Airlines
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to under-perform the Juneyao Airlines. In addition to that, Shandong Sanyuan is 1.19 times more volatile than Juneyao Airlines. It trades about -0.22 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about -0.17 per unit of volatility. If you would invest 1,419 in Juneyao Airlines on October 17, 2024 and sell it today you would lose (101.00) from holding Juneyao Airlines or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Juneyao Airlines
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Juneyao Airlines |
Shandong Sanyuan and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Juneyao Airlines
The main advantage of trading using opposite Shandong Sanyuan and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Xilong Chemical Co | Shandong Sanyuan vs. Dosilicon Co | Shandong Sanyuan vs. Xinjiang Baodi Mining | Shandong Sanyuan vs. Dymatic Chemicals |
| Juneyao Airlines vs. Digiwin Software Co | Juneyao Airlines vs. Liaoning Chengda Biotechnology | Juneyao Airlines vs. Shandong Sanyuan Biotechnology | Juneyao Airlines vs. Tianjin Ruixin 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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