Correlation Between Juneyao Airlines and BYD Co
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By analyzing existing cross correlation between Juneyao Airlines and BYD Co Ltd, you can compare the effects of market volatilities on Juneyao Airlines and BYD Co 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 BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and BYD Co.
Diversification Opportunities for Juneyao Airlines and BYD Co
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juneyao and BYD is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co 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 BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and BYD Co go up and down completely randomly.
Pair Corralation between Juneyao Airlines and BYD Co
Assuming the 90 days trading horizon Juneyao Airlines is expected to under-perform the BYD Co. But the stock apears to be less risky and, when comparing its historical volatility, Juneyao Airlines is 1.03 times less risky than BYD Co. The stock trades about -0.06 of its potential returns per unit of risk. The BYD Co Ltd is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 28,868 in BYD Co Ltd on November 18, 2024 and sell it today you would earn a total of 6,737 from holding BYD Co Ltd or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juneyao Airlines vs. BYD Co Ltd
Performance |
| Timeline |
| Juneyao Airlines |
| BYD Co |
Juneyao Airlines and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and BYD Co
The main advantage of trading using opposite Juneyao Airlines and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Juneyao Airlines vs. Chengtun Mining Group | Juneyao Airlines vs. Suzhou Weizhixiang Food | Juneyao Airlines vs. Zhejiang Huatong Meat | Juneyao Airlines vs. Gansu Huangtai Wine marketing |
| BYD Co vs. Chongqing Brewery Co | BYD Co vs. Universal Scientific Industrial | BYD Co vs. Shanghai Yanpu Metal | BYD Co vs. Tianshan Aluminum Group |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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