Correlation Between HeNan Splendor and AECC Aviation
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By analyzing existing cross correlation between HeNan Splendor Science and AECC Aviation Power, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and AECC Aviation.
Diversification Opportunities for HeNan Splendor and AECC Aviation
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HeNan and AECC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and AECC Aviation go up and down completely randomly.
Pair Corralation between HeNan Splendor and AECC Aviation
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 2.31 times more return on investment than AECC Aviation. However, HeNan Splendor is 2.31 times more volatile than AECC Aviation Power. It trades about 0.17 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.26 per unit of risk. If you would invest 947.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 101.00 from holding HeNan Splendor Science or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. AECC Aviation Power
Performance |
| Timeline |
| HeNan Splendor Science |
| AECC Aviation Power |
HeNan Splendor and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and AECC Aviation
The main advantage of trading using opposite HeNan Splendor and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Qiaoyin Environmental Tech | HeNan Splendor vs. Shanghai Ziyan Foods | HeNan Splendor vs. Namchow Food Group | HeNan Splendor vs. Dynagreen Environmental Protection |
| AECC Aviation vs. Wuxi Double Elephant | AECC Aviation vs. Luyin Investment Group | AECC Aviation vs. Zhejiang Construction Investment | AECC Aviation vs. Postal Savings Bank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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