Correlation Between Juneyao Airlines and China Express
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By analyzing existing cross correlation between Juneyao Airlines and China Express Airlines, you can compare the effects of market volatilities on Juneyao Airlines and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juneyao Airlines and China Express.
Diversification Opportunities for Juneyao Airlines and China Express
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juneyao and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Juneyao Airlines and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Juneyao Airlines i.e., Juneyao Airlines and China Express go up and down completely randomly.
Pair Corralation between Juneyao Airlines and China Express
Assuming the 90 days trading horizon Juneyao Airlines is expected to under-perform the China Express. But the stock apears to be less risky and, when comparing its historical volatility, Juneyao Airlines is 1.11 times less risky than China Express. The stock trades about -0.09 of its potential returns per unit of risk. The China Express Airlines is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 840.00 in China Express Airlines on December 7, 2024 and sell it today you would lose (81.00) from holding China Express Airlines or give up 9.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Juneyao Airlines vs. China Express Airlines
Performance |
Timeline |
Juneyao Airlines |
China Express Airlines |
Juneyao Airlines and China Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juneyao Airlines and China Express
The main advantage of trading using opposite Juneyao Airlines and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juneyao Airlines position performs unexpectedly, China Express 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 Express will offset losses from the drop in China Express' long position.Juneyao Airlines vs. Nancal Energy Saving Tech | Juneyao Airlines vs. Anhui Transport Consulting | Juneyao Airlines vs. Lander Sports Development | Juneyao Airlines vs. Jiangsu Financial Leasing |
China Express vs. Chengdu Spaceon Electronics | China Express vs. Allied Machinery Co | China Express vs. Anhui Huaren Health | China Express vs. Shandong Sinoglory Health |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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