Correlation Between Chinese Universe and Juneyao Airlines
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By analyzing existing cross correlation between Chinese Universe Publishing and Juneyao Airlines, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Juneyao Airlines.
Diversification Opportunities for Chinese Universe and Juneyao Airlines
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Juneyao is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Chinese Universe and Juneyao Airlines
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Juneyao Airlines. In addition to that, Chinese Universe is 1.16 times more volatile than Juneyao Airlines. It trades about -0.2 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about 0.09 per unit of volatility. If you would invest 1,362 in Juneyao Airlines on August 30, 2024 and sell it today you would earn a total of 104.00 from holding Juneyao Airlines or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Juneyao Airlines
Performance |
| Timeline |
| Chinese Universe Pub |
| Juneyao Airlines |
Chinese Universe and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Juneyao Airlines
The main advantage of trading using opposite Chinese Universe and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. Xiamen Jihong Package | Chinese Universe vs. Eastroc Beverage Group | Chinese Universe vs. Xinjiang Tianrun Dairy | Chinese Universe vs. Ligao Foods CoLtd |
| Juneyao Airlines vs. Ming Yang Smart | Juneyao Airlines vs. 159681 | Juneyao Airlines vs. 159005 | Juneyao Airlines vs. Loctek Ergonomic 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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