Correlation Between Agricultural Bank and Juneyao Airlines
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By analyzing existing cross correlation between Agricultural Bank of and Juneyao Airlines, you can compare the effects of market volatilities on Agricultural Bank 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 Agricultural Bank with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Juneyao Airlines.
Diversification Opportunities for Agricultural Bank and Juneyao Airlines
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Juneyao is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Agricultural Bank 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 Agricultural Bank of 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 Agricultural Bank i.e., Agricultural Bank and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Agricultural Bank and Juneyao Airlines
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 6.59 times less return on investment than Juneyao Airlines. But when comparing it to its historical volatility, Agricultural Bank of is 1.94 times less risky than Juneyao Airlines. It trades about 0.05 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,319 in Juneyao Airlines on August 29, 2024 and sell it today you would earn a total of 98.00 from holding Juneyao Airlines or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Juneyao Airlines
Performance |
| Timeline |
| Agricultural Bank |
| Juneyao Airlines |
Agricultural Bank and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Juneyao Airlines
The main advantage of trading using opposite Agricultural Bank and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank 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.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| Juneyao Airlines vs. PetroChina Co Ltd | Juneyao Airlines vs. China State Construction | Juneyao Airlines vs. China Mobile Limited | Juneyao Airlines vs. Industrial and Commercial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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