Correlation Between Shanghai Ziyan and Juneyao Airlines
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Juneyao Airlines, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Juneyao Airlines.
Diversification Opportunities for Shanghai Ziyan and Juneyao Airlines
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Juneyao is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Juneyao Airlines
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Juneyao Airlines. In addition to that, Shanghai Ziyan is 1.38 times more volatile than Juneyao Airlines. It trades about -0.26 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about -0.07 per unit of volatility. If you would invest 1,370 in Juneyao Airlines on November 1, 2024 and sell it today you would lose (46.00) from holding Juneyao Airlines or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Juneyao Airlines
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Juneyao Airlines |
Shanghai Ziyan and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Juneyao Airlines
The main advantage of trading using opposite Shanghai Ziyan and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Guangzhou Restaurants Group | Shanghai Ziyan vs. State Grid InformationCommunication | Shanghai Ziyan vs. Tongyu Communication | Shanghai Ziyan vs. Namchow Food Group |
| Juneyao Airlines vs. Vats Liquor Chain | Juneyao Airlines vs. Harson Trading China | Juneyao Airlines vs. Beijing Mainstreets Investment | Juneyao Airlines vs. Hunan Investment Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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