Correlation Between ZhongAn Online and Fly Leasing

Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and Fly Leasing 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 ZhongAn Online and Fly Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ZhongAn Online P and Fly Leasing Limited, you can compare the effects of market volatilities on ZhongAn Online and Fly Leasing 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 ZhongAn Online with a short position of Fly Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Fly Leasing.

Diversification Opportunities for ZhongAn Online and Fly Leasing

0.0

Correlation Coefficient

ZhongAn Online  Fly Leasing

Pay attention - limited upside

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

Pair Corralation between ZhongAn Online and Fly Leasing

If you would invest (100.00) in Fly Leasing Limited on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Fly Leasing Limited 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

ZhongAn Online P  vs.  Fly Leasing Limited

ZhongAn Online P

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZhongAn Online P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fly Leasing Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fly Leasing Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Fly Leasing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ZhongAn Online and Fly Leasing

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

The idea behind ZhongAn Online P and Fly Leasing Limited 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 Global Correlations module to find global opportunities by holding instruments from different markets.