Correlation Between Shenyang Huitian and AECC Aviation
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By analyzing existing cross correlation between Shenyang Huitian Thermal and AECC Aviation Power, you can compare the effects of market volatilities on Shenyang Huitian and AECC Aviation 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 Shenyang Huitian with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and AECC Aviation.
Diversification Opportunities for Shenyang Huitian and AECC Aviation
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and AECC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and AECC Aviation Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECC Aviation Power and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with AECC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECC Aviation Power has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and AECC Aviation go up and down completely randomly.
Pair Corralation between Shenyang Huitian and AECC Aviation
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.55 times more return on investment than AECC Aviation. However, Shenyang Huitian is 1.55 times more volatile than AECC Aviation Power. It trades about 0.03 of its potential returns per unit of risk. AECC Aviation Power is currently generating about 0.0 per unit of risk. If you would invest 268.00 in Shenyang Huitian Thermal on January 23, 2025 and sell it today you would earn a total of 53.00 from holding Shenyang Huitian Thermal or generate 19.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.41% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. AECC Aviation Power
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| AECC Aviation Power |
Shenyang Huitian and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and AECC Aviation
The main advantage of trading using opposite Shenyang Huitian and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, AECC Aviation 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 AECC Aviation will offset losses from the drop in AECC Aviation's long position.| Shenyang Huitian vs. Huaibei Mining Holdings | Shenyang Huitian vs. Jilin Jlu Communication | Shenyang Huitian vs. JCHX Mining Management | Shenyang Huitian vs. Sunwave Communications Co |
| AECC Aviation vs. Industrial and Commercial | AECC Aviation vs. Kweichow Moutai Co | AECC Aviation vs. Agricultural Bank of | AECC Aviation vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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