Correlation Between Juneyao Airlines and Guangdong Advertising
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By analyzing existing cross correlation between Juneyao Airlines and Guangdong Advertising Co, you can compare the effects of market volatilities on Juneyao Airlines and Guangdong Advertising 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 Guangdong Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Guangdong Advertising.
Diversification Opportunities for Juneyao Airlines and Guangdong Advertising
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juneyao and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Guangdong Advertising Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Advertising 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 Guangdong Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Advertising has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Guangdong Advertising go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Guangdong Advertising
Assuming the 90 days trading horizon Juneyao Airlines is expected to under-perform the Guangdong Advertising. But the stock apears to be less risky and, when comparing its historical volatility, Juneyao Airlines is 1.68 times less risky than Guangdong Advertising. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Advertising Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Guangdong Advertising Co on October 16, 2024 and sell it today you would earn a total of 289.00 from holding Guangdong Advertising Co or generate 60.33% 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. Guangdong Advertising Co
Performance |
| Timeline |
| Juneyao Airlines |
| Guangdong Advertising |
Juneyao Airlines and Guangdong Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Guangdong Advertising
The main advantage of trading using opposite Juneyao Airlines and Guangdong Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Guangdong Advertising 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 Guangdong Advertising will offset losses from the drop in Guangdong Advertising's long position.| Juneyao Airlines vs. Fuda Alloy Materials | Juneyao Airlines vs. Chenzhou Jingui Silver | Juneyao Airlines vs. Suzhou Xingye Material | Juneyao Airlines vs. Uroica Mining Safety |
| Guangdong Advertising vs. King Strong New Material | Guangdong Advertising vs. Spring Airlines Co | Guangdong Advertising vs. Juneyao Airlines | Guangdong Advertising vs. Guilin Seamild Foods |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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