Correlation Between Juneyao Airlines and Ningxia Younglight
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By analyzing existing cross correlation between Juneyao Airlines and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Juneyao Airlines and Ningxia Younglight 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 Juneyao Airlines with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Ningxia Younglight.
Diversification Opportunities for Juneyao Airlines and Ningxia Younglight
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juneyao and Ningxia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Juneyao Airlines 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 Juneyao Airlines are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Ningxia Younglight
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 2.41 times less return on investment than Ningxia Younglight. But when comparing it to its historical volatility, Juneyao Airlines is 1.84 times less risky than Ningxia Younglight. It trades about 0.09 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Ningxia Younglight Chemicals on August 30, 2024 and sell it today you would earn a total of 128.00 from holding Ningxia Younglight Chemicals or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juneyao Airlines vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Juneyao Airlines |
| Ningxia Younglight |
Juneyao Airlines and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Ningxia Younglight
The main advantage of trading using opposite Juneyao Airlines and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Juneyao Airlines vs. Ming Yang Smart | Juneyao Airlines vs. 159681 | Juneyao Airlines vs. 159005 | Juneyao Airlines vs. Loctek Ergonomic Technology |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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