Correlation Between Juneyao Airlines and Qingdao Haier
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By analyzing existing cross correlation between Juneyao Airlines and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Juneyao Airlines and Qingdao Haier 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 Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Qingdao Haier.
Diversification Opportunities for Juneyao Airlines and Qingdao Haier
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juneyao and Qingdao is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical 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 Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Qingdao Haier go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Qingdao Haier
Assuming the 90 days trading horizon Juneyao Airlines is expected to under-perform the Qingdao Haier. But the stock apears to be less risky and, when comparing its historical volatility, Juneyao Airlines is 1.56 times less risky than Qingdao Haier. The stock trades about -0.22 of its potential returns per unit of risk. The Qingdao Haier Biomedical is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 3,506 in Qingdao Haier Biomedical on October 20, 2024 and sell it today you would lose (282.00) from holding Qingdao Haier Biomedical or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juneyao Airlines vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Juneyao Airlines |
| Qingdao Haier Biomedical |
Juneyao Airlines and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Qingdao Haier
The main advantage of trading using opposite Juneyao Airlines and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Juneyao Airlines vs. Jinyu Bio Technology Co | Juneyao Airlines vs. Zijin Mining Group | Juneyao Airlines vs. Hainan Mining Co | Juneyao Airlines vs. Shengda Mining Co |
| Qingdao Haier vs. Weihai Honglin Electronic | Qingdao Haier vs. Jiangxi Lianchuang Opto electronic | Qingdao Haier vs. Eit Environmental Development | Qingdao Haier vs. Gansu Jiu Steel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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