Correlation Between Bank of China and Juneyao Airlines
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By analyzing existing cross correlation between Bank of China and Juneyao Airlines, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Juneyao Airlines.
Diversification Opportunities for Bank of China and Juneyao Airlines
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Juneyao is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Bank of China and Juneyao Airlines
Assuming the 90 days trading horizon Bank of China is expected to generate 1.98 times less return on investment than Juneyao Airlines. But when comparing it to its historical volatility, Bank of China is 1.76 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,205 in Juneyao Airlines on September 3, 2024 and sell it today you would earn a total of 242.00 from holding Juneyao Airlines or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Juneyao Airlines
Performance |
| Timeline |
| Bank of China |
| Juneyao Airlines |
Bank of China and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Juneyao Airlines
The main advantage of trading using opposite Bank of China and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Tongyu Communication | Bank of China vs. Guangzhou Haige Communications | Bank of China vs. Everdisplay Optronics Shanghai | Bank of China vs. Wuhan Yangtze Communication |
| Juneyao Airlines vs. Cultural Investment Holdings | Juneyao Airlines vs. Gome Telecom Equipment | Juneyao Airlines vs. Bus Online Co | Juneyao Airlines vs. Holitech Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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