Correlation Between Hengdian Entertainment and AECC Aviation
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By analyzing existing cross correlation between Hengdian Entertainment Co and AECC Aviation Power, you can compare the effects of market volatilities on Hengdian Entertainment 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 Hengdian Entertainment with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and AECC Aviation.
Diversification Opportunities for Hengdian Entertainment and AECC Aviation
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengdian and AECC is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co 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 Hengdian Entertainment 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 Hengdian Entertainment Co 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 Hengdian Entertainment i.e., Hengdian Entertainment and AECC Aviation go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and AECC Aviation
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.97 times more return on investment than AECC Aviation. However, Hengdian Entertainment is 1.97 times more volatile than AECC Aviation Power. It trades about -0.03 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.08 per unit of risk. If you would invest 1,483 in Hengdian Entertainment Co on October 23, 2024 and sell it today you would lose (44.00) from holding Hengdian Entertainment Co or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. AECC Aviation Power
Performance |
| Timeline |
| Hengdian Entertainment |
| AECC Aviation Power |
Hengdian Entertainment and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and AECC Aviation
The main advantage of trading using opposite Hengdian Entertainment and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment 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.| Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Kweichow Moutai Co | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. China Mobile Limited |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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