Correlation Between Anhui Xinhua and Juneyao Airlines
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By analyzing existing cross correlation between Anhui Xinhua Media and Juneyao Airlines, you can compare the effects of market volatilities on Anhui Xinhua 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 Anhui Xinhua with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Juneyao Airlines.
Diversification Opportunities for Anhui Xinhua and Juneyao Airlines
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Juneyao is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Anhui Xinhua 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 Anhui Xinhua Media 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 Anhui Xinhua i.e., Anhui Xinhua and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Juneyao Airlines
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Juneyao Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Xinhua Media is 1.17 times less risky than Juneyao Airlines. The stock trades about -0.24 of its potential returns per unit of risk. The Juneyao Airlines is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,399 in Juneyao Airlines on October 30, 2024 and sell it today you would lose (75.00) from holding Juneyao Airlines or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Juneyao Airlines
Performance |
| Timeline |
| Anhui Xinhua Media |
| Juneyao Airlines |
Anhui Xinhua and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Juneyao Airlines
The main advantage of trading using opposite Anhui Xinhua and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua 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.| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua vs. Ping An Insurance |
| Juneyao Airlines vs. GRINM Semiconductor Materials | Juneyao Airlines vs. Touchstone International Medical | Juneyao Airlines vs. Union Semiconductor Co | Juneyao Airlines vs. Will Semiconductor Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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