Correlation Between AECC Aviation and Der International
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By analyzing existing cross correlation between AECC Aviation Power and Der International Home, you can compare the effects of market volatilities on AECC Aviation and Der International 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 AECC Aviation with a short position of Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECC Aviation and Der International.
Diversification Opportunities for AECC Aviation and Der International
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AECC and Der is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AECC Aviation Power and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home and AECC Aviation 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 AECC Aviation Power are associated (or correlated) with Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of AECC Aviation i.e., AECC Aviation and Der International go up and down completely randomly.
Pair Corralation between AECC Aviation and Der International
Assuming the 90 days trading horizon AECC Aviation Power is expected to under-perform the Der International. But the stock apears to be less risky and, when comparing its historical volatility, AECC Aviation Power is 1.68 times less risky than Der International. The stock trades about -0.2 of its potential returns per unit of risk. The Der International Home is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Der International Home on September 15, 2024 and sell it today you would earn a total of 54.00 from holding Der International Home or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AECC Aviation Power vs. Der International Home
Performance |
| Timeline |
| AECC Aviation Power |
| Der International Home |
AECC Aviation and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECC Aviation and Der International
The main advantage of trading using opposite AECC Aviation and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECC Aviation position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| AECC Aviation vs. Der International Home | AECC Aviation vs. Shanghai Shuixing Home | AECC Aviation vs. Vohringer Home Technology | AECC Aviation vs. Minmetals Capital Co |
| Der International vs. PetroChina Co Ltd | Der International vs. China Mobile Limited | Der International vs. CNOOC Limited | Der International vs. Ping An Insurance |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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