Correlation Between China State and Juneyao Airlines
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By analyzing existing cross correlation between China State Construction and Juneyao Airlines, you can compare the effects of market volatilities on China State 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 China State with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Juneyao Airlines.
Diversification Opportunities for China State and Juneyao Airlines
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Juneyao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and China State 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 China State Construction 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 China State i.e., China State and Juneyao Airlines go up and down completely randomly.
Pair Corralation between China State and Juneyao Airlines
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Juneyao Airlines. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.96 times less risky than Juneyao Airlines. The stock trades about -0.11 of its potential returns per unit of risk. The Juneyao Airlines is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,324 in Juneyao Airlines on November 27, 2024 and sell it today you would lose (13.00) from holding Juneyao Airlines or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Juneyao Airlines
Performance |
| Timeline |
| China State Construction |
| Juneyao Airlines |
China State and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Juneyao Airlines
The main advantage of trading using opposite China State and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International Co |
| Juneyao Airlines vs. HUAQIN TECHNOLOGY LTD | Juneyao Airlines vs. INKON Life Technology | Juneyao Airlines vs. Kuang Chi Technologies | Juneyao Airlines vs. Shandong Rike Chemical |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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