Correlation Between Shanghai CEO and AECC Aviation
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By analyzing existing cross correlation between Shanghai CEO Environmental and AECC Aviation Power, you can compare the effects of market volatilities on Shanghai CEO 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 CEO with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and AECC Aviation.
Diversification Opportunities for Shanghai CEO and AECC Aviation
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and AECC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental 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 CEO 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 CEO Environmental 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 CEO i.e., Shanghai CEO and AECC Aviation go up and down completely randomly.
Pair Corralation between Shanghai CEO and AECC Aviation
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 1.5 times more return on investment than AECC Aviation. However, Shanghai CEO is 1.5 times more volatile than AECC Aviation Power. It trades about 0.21 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.18 per unit of risk. If you would invest 799.00 in Shanghai CEO Environmental on November 4, 2024 and sell it today you would earn a total of 64.00 from holding Shanghai CEO Environmental or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. AECC Aviation Power
Performance |
| Timeline |
| Shanghai CEO Environ |
| AECC Aviation Power |
Shanghai CEO and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and AECC Aviation
The main advantage of trading using opposite Shanghai CEO and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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 CEO vs. Beijing Bewinner Communications | Shanghai CEO vs. Fibocom Wireless | Shanghai CEO vs. Guangdong Transtek Medical | Shanghai CEO vs. Nanjing Putian Telecommunications |
| AECC Aviation vs. Bomesc Offshore Engineering | AECC Aviation vs. Chengdu B ray Media | AECC Aviation vs. Shandong Publishing Media | AECC Aviation vs. Hengdian Entertainment 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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