Correlation Between Juneyao Airlines and XinJiang GuoTong
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By analyzing existing cross correlation between Juneyao Airlines and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Juneyao Airlines and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and XinJiang GuoTong.
Diversification Opportunities for Juneyao Airlines and XinJiang GuoTong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juneyao and XinJiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Juneyao Airlines and XinJiang GuoTong
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 0.87 times more return on investment than XinJiang GuoTong. However, Juneyao Airlines is 1.15 times less risky than XinJiang GuoTong. It trades about 0.2 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.16 per unit of risk. If you would invest 1,022 in Juneyao Airlines on August 29, 2024 and sell it today you would earn a total of 395.00 from holding Juneyao Airlines or generate 38.65% 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. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Juneyao Airlines |
| XinJiang GuoTong Pipeline |
Juneyao Airlines and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and XinJiang GuoTong
The main advantage of trading using opposite Juneyao Airlines and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Juneyao Airlines vs. PetroChina Co Ltd | Juneyao Airlines vs. China State Construction | Juneyao Airlines vs. China Mobile Limited | Juneyao Airlines vs. Industrial and Commercial |
| XinJiang GuoTong vs. PetroChina Co Ltd | XinJiang GuoTong vs. China State Construction | XinJiang GuoTong vs. China Mobile Limited | XinJiang GuoTong vs. Industrial and Commercial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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