Correlation Between Jiangxi JDL and Juneyao Airlines
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Juneyao Airlines, you can compare the effects of market volatilities on Jiangxi JDL and Juneyao Airlines 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 Jiangxi JDL with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Juneyao Airlines.
Diversification Opportunities for Jiangxi JDL and Juneyao Airlines
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Juneyao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Jiangxi JDL 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 Jiangxi JDL Environmental are associated (or correlated) with Juneyao Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juneyao Airlines has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Juneyao Airlines
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 0.95 times more return on investment than Juneyao Airlines. However, Jiangxi JDL Environmental is 1.05 times less risky than Juneyao Airlines. It trades about 0.0 of its potential returns per unit of risk. Juneyao Airlines is currently generating about 0.0 per unit of risk. If you would invest 1,316 in Jiangxi JDL Environmental on September 3, 2024 and sell it today you would lose (111.00) from holding Jiangxi JDL Environmental or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Juneyao Airlines
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Juneyao Airlines |
Jiangxi JDL and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Juneyao Airlines
The main advantage of trading using opposite Jiangxi JDL and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Juneyao Airlines 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 Juneyao Airlines will offset losses from the drop in Juneyao Airlines' long position.| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL vs. Holitech Technology Co |
| Juneyao Airlines vs. Cultural Investment Holdings | Juneyao Airlines vs. Gome Telecom Equipment | Juneyao Airlines vs. Bus Online Co | Juneyao Airlines vs. Holitech Technology Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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