Correlation Between Juneyao Airlines and Sunwave Communications
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By analyzing existing cross correlation between Juneyao Airlines and Sunwave Communications Co, you can compare the effects of market volatilities on Juneyao Airlines and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Sunwave Communications.
Diversification Opportunities for Juneyao Airlines and Sunwave Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juneyao and Sunwave is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Sunwave Communications go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Sunwave Communications
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 1.37 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Juneyao Airlines is 2.37 times less risky than Sunwave Communications. It trades about 0.31 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 547.00 in Sunwave Communications Co on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Sunwave Communications Co or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juneyao Airlines vs. Sunwave Communications Co
Performance |
| Timeline |
| Juneyao Airlines |
| Sunwave Communications |
Juneyao Airlines and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Sunwave Communications
The main advantage of trading using opposite Juneyao Airlines and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Bank of China | Juneyao Airlines vs. PetroChina Co Ltd |
| Sunwave Communications vs. Northern United Publishing | Sunwave Communications vs. RoadMain T Co | Sunwave Communications vs. Broadex Technologies Co | Sunwave Communications vs. Beijing Kaiwen Education |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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