Correlation Between JuneYao Dairy and China Eastern
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By analyzing existing cross correlation between JuneYao Dairy Co and China Eastern Airlines, you can compare the effects of market volatilities on JuneYao Dairy and China Eastern 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 Dairy with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and China Eastern.
Diversification Opportunities for JuneYao Dairy and China Eastern
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and JuneYao Dairy 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 Dairy Co are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and China Eastern go up and down completely randomly.
Pair Corralation between JuneYao Dairy and China Eastern
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the China Eastern. In addition to that, JuneYao Dairy is 1.31 times more volatile than China Eastern Airlines. It trades about -0.07 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.04 per unit of volatility. If you would invest 404.00 in China Eastern Airlines on October 22, 2024 and sell it today you would earn a total of 5.00 from holding China Eastern Airlines or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. China Eastern Airlines
Performance |
| Timeline |
| JuneYao Dairy |
| China Eastern Airlines |
JuneYao Dairy and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and China Eastern
The main advantage of trading using opposite JuneYao Dairy and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| JuneYao Dairy vs. China Everbright Bank | JuneYao Dairy vs. Yuan Longping High tech | JuneYao Dairy vs. Montage Technology Co | JuneYao Dairy vs. Panda Financial Holding |
| China Eastern vs. Zhonghong Pulin Medical | China Eastern vs. Bus Online Co | China Eastern vs. Xiangyu Medical Co | China Eastern vs. Cowealth Medical China |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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