Correlation Between Juneyao Airlines and Guangzhou Restaurants
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By analyzing existing cross correlation between Juneyao Airlines and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Juneyao Airlines and Guangzhou Restaurants 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 Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Guangzhou Restaurants.
Diversification Opportunities for Juneyao Airlines and Guangzhou Restaurants
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juneyao and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants 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 Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Guangzhou Restaurants
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 1.05 times more return on investment than Guangzhou Restaurants. However, Juneyao Airlines is 1.05 times more volatile than Guangzhou Restaurants Group. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about 0.02 per unit of risk. If you would invest 1,322 in Juneyao Airlines on September 5, 2024 and sell it today you would earn a total of 55.00 from holding Juneyao Airlines or generate 4.16% 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. Guangzhou Restaurants Group
Performance |
| Timeline |
| Juneyao Airlines |
| Guangzhou Restaurants |
Juneyao Airlines and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Guangzhou Restaurants
The main advantage of trading using opposite Juneyao Airlines and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Bank of China | Juneyao Airlines vs. China Construction Bank |
| Guangzhou Restaurants vs. Hengdian Entertainment Co | Guangzhou Restaurants vs. Longjian Road Bridge | Guangzhou Restaurants vs. Juneyao Airlines | Guangzhou Restaurants vs. Focus Media Information |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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