Correlation Between AVIC Fund and Juneyao Airlines
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By analyzing existing cross correlation between AVIC Fund Management and Juneyao Airlines, you can compare the effects of market volatilities on AVIC Fund 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 AVIC Fund with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Juneyao Airlines.
Diversification Opportunities for AVIC Fund and Juneyao Airlines
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVIC and Juneyao is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and AVIC Fund 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 AVIC Fund Management 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 AVIC Fund i.e., AVIC Fund and Juneyao Airlines go up and down completely randomly.
Pair Corralation between AVIC Fund and Juneyao Airlines
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.21 times more return on investment than Juneyao Airlines. However, AVIC Fund Management is 4.87 times less risky than Juneyao Airlines. It trades about 0.52 of its potential returns per unit of risk. Juneyao Airlines is currently generating about -0.06 per unit of risk. If you would invest 1,003 in AVIC Fund Management on September 29, 2024 and sell it today you would earn a total of 56.00 from holding AVIC Fund Management or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Juneyao Airlines
Performance |
| Timeline |
| AVIC Fund Management |
| Juneyao Airlines |
AVIC Fund and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Juneyao Airlines
The main advantage of trading using opposite AVIC Fund and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund 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.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
| Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. China Construction Bank | Juneyao Airlines vs. Bank of China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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