Correlation Between Fuda Alloy and Juneyao Airlines
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By analyzing existing cross correlation between Fuda Alloy Materials and Juneyao Airlines, you can compare the effects of market volatilities on Fuda Alloy 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 Fuda Alloy with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Juneyao Airlines.
Diversification Opportunities for Fuda Alloy and Juneyao Airlines
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fuda and Juneyao is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Fuda Alloy 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 Fuda Alloy Materials 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 Fuda Alloy i.e., Fuda Alloy and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Fuda Alloy and Juneyao Airlines
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.35 times more return on investment than Juneyao Airlines. However, Fuda Alloy is 1.35 times more volatile than Juneyao Airlines. It trades about 0.06 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.04 per unit of risk. If you would invest 1,102 in Fuda Alloy Materials on October 29, 2024 and sell it today you would earn a total of 431.00 from holding Fuda Alloy Materials or generate 39.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Juneyao Airlines
Performance |
| Timeline |
| Fuda Alloy Materials |
| Juneyao Airlines |
Fuda Alloy and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Juneyao Airlines
The main advantage of trading using opposite Fuda Alloy and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy 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.| Fuda Alloy vs. Gansu Huangtai Wine marketing | Fuda Alloy vs. Linewell Software Co | Fuda Alloy vs. China National Software | Fuda Alloy vs. Dareway Software Co |
| Juneyao Airlines vs. Xinjiang Beixin RoadBridge | Juneyao Airlines vs. Longjian Road Bridge | Juneyao Airlines vs. Cowealth Medical China | Juneyao Airlines vs. Anhui Transport Consulting |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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