Correlation Between Airtac International and Chen Full

Can any of the company-specific risk be diversified away by investing in both Airtac International and Chen Full at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Airtac International and Chen Full into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Airtac International Group and Chen Full International, you can compare the effects of market volatilities on Airtac International and Chen Full 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 Airtac International with a short position of Chen Full. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Chen Full.

Diversification Opportunities for Airtac International and Chen Full

0.0

Correlation Coefficient

Airtac International  Chen Full

Pay attention - limited upside

The 3 months correlation between Airtac and Chen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Chen Full International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chen Full International and Airtac International 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 Airtac International Group are associated (or correlated) with Chen Full. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chen Full International has no effect on the direction of Airtac International i.e., Airtac International and Chen Full go up and down completely randomly.

Pair Corralation between Airtac International and Chen Full

If you would invest (100.00) in Chen Full International on October 9, 2024 and sell it today you would earn a total of  100.00  from holding Chen Full International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Airtac International Group  vs.  Chen Full International

Airtac International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Airtac International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Chen Full International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chen Full International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Chen Full is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Airtac International and Chen Full

The main advantage of trading using opposite Airtac International and Chen Full positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Chen Full 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 Chen Full will offset losses from the drop in Chen Full's long position.

The idea behind Airtac International Group and Chen Full International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.