Correlation Between Der International and AECC Aviation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Der International Home and AECC Aviation Power, you can compare the effects of market volatilities on Der International 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 Der International with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and AECC Aviation.
Diversification Opportunities for Der International and AECC Aviation
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Der and AECC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home 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 Der 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 Der International Home 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 Der International i.e., Der International and AECC Aviation go up and down completely randomly.
Pair Corralation between Der International and AECC Aviation
Assuming the 90 days trading horizon Der International Home is expected to under-perform the AECC Aviation. In addition to that, Der International is 1.65 times more volatile than AECC Aviation Power. It trades about -0.01 of its total potential returns per unit of risk. AECC Aviation Power is currently generating about 0.02 per unit of volatility. If you would invest 3,753 in AECC Aviation Power on September 15, 2024 and sell it today you would earn a total of 267.00 from holding AECC Aviation Power or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Der International Home vs. AECC Aviation Power
Performance |
| Timeline |
| Der International Home |
| AECC Aviation Power |
Der International and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and AECC Aviation
The main advantage of trading using opposite Der International and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. PetroChina Co Ltd | Der International vs. China Mobile Limited | Der International vs. CNOOC Limited | Der International vs. Ping An Insurance |
| AECC Aviation vs. Der International Home | AECC Aviation vs. Shanghai Shuixing Home | AECC Aviation vs. Vohringer Home Technology | AECC Aviation vs. Minmetals Capital Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |