Correlation Between Sichuan Newsnet and AECC Aviation
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By analyzing existing cross correlation between Sichuan Newsnet Media and AECC Aviation Power, you can compare the effects of market volatilities on Sichuan Newsnet 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 Sichuan Newsnet with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Newsnet and AECC Aviation.
Diversification Opportunities for Sichuan Newsnet and AECC Aviation
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and AECC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Newsnet Media 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 Sichuan Newsnet 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 Sichuan Newsnet Media 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 Sichuan Newsnet i.e., Sichuan Newsnet and AECC Aviation go up and down completely randomly.
Pair Corralation between Sichuan Newsnet and AECC Aviation
Assuming the 90 days trading horizon Sichuan Newsnet Media is expected to under-perform the AECC Aviation. In addition to that, Sichuan Newsnet is 1.54 times more volatile than AECC Aviation Power. It trades about -0.15 of its total potential returns per unit of risk. AECC Aviation Power is currently generating about -0.08 per unit of volatility. If you would invest 3,930 in AECC Aviation Power on October 23, 2024 and sell it today you would lose (127.00) from holding AECC Aviation Power or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Newsnet Media vs. AECC Aviation Power
Performance |
| Timeline |
| Sichuan Newsnet Media |
| AECC Aviation Power |
Sichuan Newsnet and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Newsnet and AECC Aviation
The main advantage of trading using opposite Sichuan Newsnet and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Newsnet 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.| Sichuan Newsnet vs. Wasu Media Holding | Sichuan Newsnet vs. Heilongjiang Publishing Media | Sichuan Newsnet vs. COL Digital Publishing | Sichuan Newsnet vs. Tangel Publishing |
| AECC Aviation vs. Shenyang Chemical Industry | AECC Aviation vs. Fujian Nanwang Environment | AECC Aviation vs. Lianhe Chemical Technology | AECC Aviation vs. HeBei Jinniu Chemical |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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