Correlation Between Juneyao Airlines and Fujian Rongji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Juneyao Airlines and Fujian Rongji Software, you can compare the effects of market volatilities on Juneyao Airlines and Fujian Rongji 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 Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Fujian Rongji.
Diversification Opportunities for Juneyao Airlines and Fujian Rongji
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juneyao and Fujian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software 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 Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Fujian Rongji go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Fujian Rongji
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 1.31 times less return on investment than Fujian Rongji. But when comparing it to its historical volatility, Juneyao Airlines is 1.44 times less risky than Fujian Rongji. It trades about 0.2 of its potential returns per unit of risk. Fujian Rongji Software is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Fujian Rongji Software on August 29, 2024 and sell it today you would earn a total of 213.00 from holding Fujian Rongji Software or generate 50.12% 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. Fujian Rongji Software
Performance |
| Timeline |
| Juneyao Airlines |
| Fujian Rongji Software |
Juneyao Airlines and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Fujian Rongji
The main advantage of trading using opposite Juneyao Airlines and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji'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 |
| Fujian Rongji vs. China State Construction | Fujian Rongji vs. Huafa Industrial Co | Fujian Rongji vs. China International Capital | Fujian Rongji vs. Kweichow Moutai Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |