Correlation Between Shanghai Shuixing and AECC Aviation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shuixing Home and AECC Aviation Power, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and AECC Aviation.
Diversification Opportunities for Shanghai Shuixing and AECC Aviation
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and AECC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and AECC Aviation go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and AECC Aviation
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 1.29 times more return on investment than AECC Aviation. However, Shanghai Shuixing is 1.29 times more volatile than AECC Aviation Power. It trades about 0.04 of its potential returns per unit of risk. AECC Aviation Power is currently generating about 0.02 per unit of risk. If you would invest 1,470 in Shanghai Shuixing Home on September 15, 2024 and sell it today you would earn a total of 291.00 from holding Shanghai Shuixing Home or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. AECC Aviation Power
Performance |
| Timeline |
| Shanghai Shuixing Home |
| AECC Aviation Power |
Shanghai Shuixing and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and AECC Aviation
The main advantage of trading using opposite Shanghai Shuixing and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Nanjing Putian Telecommunications | Shanghai Shuixing vs. Tianjin Realty Development | Shanghai Shuixing vs. Kangyue Technology Co | Shanghai Shuixing vs. Shenzhen Hifuture Electric |
| AECC Aviation vs. Der International Home | AECC Aviation vs. Shanghai Shuixing Home | AECC Aviation vs. Vohringer Home Technology | AECC Aviation vs. Minmetals Capital Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |