Correlation Between Xinjiang Communications and Juneyao Airlines
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By analyzing existing cross correlation between Xinjiang Communications Construction and Juneyao Airlines, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Juneyao Airlines.
Diversification Opportunities for Xinjiang Communications and Juneyao Airlines
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Juneyao is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Juneyao Airlines
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 1.27 times less return on investment than Juneyao Airlines. In addition to that, Xinjiang Communications is 1.16 times more volatile than Juneyao Airlines. It trades about 0.13 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about 0.19 per unit of volatility. If you would invest 1,034 in Juneyao Airlines on September 25, 2024 and sell it today you would earn a total of 393.00 from holding Juneyao Airlines or generate 38.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Communications Constr vs. Juneyao Airlines
Performance |
Timeline |
Xinjiang Communications |
Juneyao Airlines |
Xinjiang Communications and Juneyao Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Communications and Juneyao Airlines
The main advantage of trading using opposite Xinjiang Communications and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. China Construction Bank |
Juneyao Airlines vs. Industrial and Commercial | Juneyao Airlines vs. Agricultural Bank of | Juneyao Airlines vs. China Construction Bank | Juneyao Airlines vs. Bank of 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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