Correlation Between Fujian Nanwang and AECC Aviation
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By analyzing existing cross correlation between Fujian Nanwang Environment and AECC Aviation Power, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and AECC Aviation.
Diversification Opportunities for Fujian Nanwang and AECC Aviation
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and AECC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and AECC Aviation go up and down completely randomly.
Pair Corralation between Fujian Nanwang and AECC Aviation
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the AECC Aviation. In addition to that, Fujian Nanwang is 2.06 times more volatile than AECC Aviation Power. It trades about -0.24 of its total potential returns per unit of risk. AECC Aviation Power is currently generating about -0.26 per unit of volatility. If you would invest 4,029 in AECC Aviation Power on November 3, 2024 and sell it today you would lose (295.00) from holding AECC Aviation Power or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. AECC Aviation Power
Performance |
| Timeline |
| Fujian Nanwang Envir |
| AECC Aviation Power |
Fujian Nanwang and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and AECC Aviation
The main advantage of trading using opposite Fujian Nanwang and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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