Correlation Between Juneyao Airlines and Shanghai CEO
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By analyzing existing cross correlation between Juneyao Airlines and Shanghai CEO Environmental, you can compare the effects of market volatilities on Juneyao Airlines and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Shanghai CEO.
Diversification Opportunities for Juneyao Airlines and Shanghai CEO
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juneyao and Shanghai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Shanghai CEO go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Shanghai CEO
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 0.96 times more return on investment than Shanghai CEO. However, Juneyao Airlines is 1.04 times less risky than Shanghai CEO. It trades about -0.06 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.23 per unit of risk. If you would invest 1,460 in Juneyao Airlines on September 29, 2024 and sell it today you would lose (52.00) from holding Juneyao Airlines or give up 3.56% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| Juneyao Airlines |
| Shanghai CEO Environ |
Juneyao Airlines and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Shanghai CEO
The main advantage of trading using opposite Juneyao Airlines and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. China Construction Bank | Juneyao Airlines vs. Bank of China |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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