Correlation Between Juneyao Airlines and Jiangsu GDK
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By analyzing existing cross correlation between Juneyao Airlines and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Juneyao Airlines and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and Jiangsu GDK.
Diversification Opportunities for Juneyao Airlines and Jiangsu GDK
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juneyao and Jiangsu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Juneyao Airlines and Jiangsu GDK
Assuming the 90 days trading horizon Juneyao Airlines is expected to generate 0.87 times more return on investment than Jiangsu GDK. However, Juneyao Airlines is 1.15 times less risky than Jiangsu GDK. It trades about -0.05 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.11 per unit of risk. If you would invest 1,399 in Juneyao Airlines on October 29, 2024 and sell it today you would lose (38.00) from holding Juneyao Airlines or give up 2.72% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Juneyao Airlines |
| Jiangsu GDK Biotechnology |
Juneyao Airlines and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juneyao Airlines and Jiangsu GDK
The main advantage of trading using opposite Juneyao Airlines and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Juneyao Airlines vs. Xinjiang Beixin RoadBridge | Juneyao Airlines vs. Longjian Road Bridge | Juneyao Airlines vs. Cowealth Medical China | Juneyao Airlines vs. Anhui Transport Consulting |
| Jiangsu GDK vs. Changjiang Jinggong Steel | Jiangsu GDK vs. Sinocat Environmental Technology | Jiangsu GDK vs. Offshore Oil Engineering | Jiangsu GDK vs. Guangzhou Zhujiang Brewery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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