Correlation Between Beijing Wantai and AECC Aviation
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By analyzing existing cross correlation between Beijing Wantai Biological and AECC Aviation Power, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and AECC Aviation.
Diversification Opportunities for Beijing Wantai and AECC Aviation
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and AECC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological 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 Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and AECC Aviation go up and down completely randomly.
Pair Corralation between Beijing Wantai and AECC Aviation
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 2.26 times less return on investment than AECC Aviation. In addition to that, Beijing Wantai is 1.16 times more volatile than AECC Aviation Power. It trades about 0.01 of its total potential returns per unit of risk. AECC Aviation Power is currently generating about 0.04 per unit of volatility. If you would invest 3,396 in AECC Aviation Power on October 25, 2024 and sell it today you would earn a total of 407.00 from holding AECC Aviation Power or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.5% |
| Values | Daily Returns |
Beijing Wantai Biological vs. AECC Aviation Power
Performance |
| Timeline |
| Beijing Wantai Biological |
| AECC Aviation Power |
Beijing Wantai and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and AECC Aviation
The main advantage of trading using opposite Beijing Wantai and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Zotye Automobile Co | Beijing Wantai vs. Quectel Wireless Solutions | Beijing Wantai vs. Xiamen Goldenhome Co | Beijing Wantai vs. Qumei Furniture Group |
| AECC Aviation vs. Zhongzhu Medical Holdings | AECC Aviation vs. Allgens Medical Technology | AECC Aviation vs. Shanghai CEO Environmental | AECC Aviation vs. Touchstone International Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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