Correlation Between China Aircraft and 466313AH6

Can any of the company-specific risk be diversified away by investing in both China Aircraft and 466313AH6 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 China Aircraft and 466313AH6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China Aircraft Leasing and US466313AH63, you can compare the effects of market volatilities on China Aircraft and 466313AH6 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 China Aircraft with a short position of 466313AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and 466313AH6.

Diversification Opportunities for China Aircraft and 466313AH6

0.0

Correlation Coefficient

China Aircraft  466313AH6

Pay attention - limited upside

The 3 months correlation between China and 466313AH6 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and US466313AH63 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US466313AH63 and China Aircraft 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 China Aircraft Leasing are associated (or correlated) with 466313AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US466313AH63 has no effect on the direction of China Aircraft i.e., China Aircraft and 466313AH6 go up and down completely randomly.

Pair Corralation between China Aircraft and 466313AH6

If you would invest  40.00  in China Aircraft Leasing on December 2, 2024 and sell it today you would earn a total of  0.00  from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.44%
Values	Daily Returns

China Aircraft Leasing  vs.  US466313AH63

China Aircraft Leasing

Risk-Adjusted Performance

Very Weak

Over the last 90 days China Aircraft Leasing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, China Aircraft is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

US466313AH63

Risk-Adjusted Performance

Very Weak

Over the last 90 days US466313AH63 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 466313AH6 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with China Aircraft and 466313AH6

The main advantage of trading using opposite China Aircraft and 466313AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, 466313AH6 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 466313AH6 will offset losses from the drop in 466313AH6's long position.

The idea behind China Aircraft Leasing and US466313AH63 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.