Correlation Between AECC Aviation and Tianjin Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between AECC Aviation Power and Tianjin Capital Environmental, you can compare the effects of market volatilities on AECC Aviation and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECC Aviation and Tianjin Capital.
Diversification Opportunities for AECC Aviation and Tianjin Capital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AECC and Tianjin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AECC Aviation Power and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of AECC Aviation i.e., AECC Aviation and Tianjin Capital go up and down completely randomly.
Pair Corralation between AECC Aviation and Tianjin Capital
Assuming the 90 days trading horizon AECC Aviation is expected to generate 1.61 times less return on investment than Tianjin Capital. In addition to that, AECC Aviation is 1.08 times more volatile than Tianjin Capital Environmental. It trades about 0.01 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.02 per unit of volatility. If you would invest 590.00 in Tianjin Capital Environmental on September 12, 2024 and sell it today you would earn a total of 24.00 from holding Tianjin Capital Environmental or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
AECC Aviation Power vs. Tianjin Capital Environmental
Performance |
| Timeline |
| AECC Aviation Power |
| Tianjin Capital Envi |
AECC Aviation and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECC Aviation and Tianjin Capital
The main advantage of trading using opposite AECC Aviation and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECC Aviation position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| AECC Aviation vs. Tianjin Capital Environmental | AECC Aviation vs. Guangdong Liantai Environmental | AECC Aviation vs. Hang Xiao Steel | AECC Aviation vs. Beijing Bashi Media |
| Tianjin Capital vs. Agricultural Bank of | Tianjin Capital vs. Industrial and Commercial | Tianjin Capital vs. Bank of China | Tianjin Capital vs. PetroChina Co Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |