Correlation Between Allgens Medical and AECC Aviation
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By analyzing existing cross correlation between Allgens Medical Technology and AECC Aviation Power, you can compare the effects of market volatilities on Allgens Medical 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 Allgens Medical with a short position of AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and AECC Aviation.
Diversification Opportunities for Allgens Medical and AECC Aviation
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allgens and AECC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology 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 Allgens Medical 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 Allgens Medical Technology 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 Allgens Medical i.e., Allgens Medical and AECC Aviation go up and down completely randomly.
Pair Corralation between Allgens Medical and AECC Aviation
Assuming the 90 days trading horizon Allgens Medical Technology is expected to generate 0.93 times more return on investment than AECC Aviation. However, Allgens Medical Technology is 1.07 times less risky than AECC Aviation. It trades about -0.16 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 1,696 in Allgens Medical Technology on November 4, 2024 and sell it today you would lose (65.00) from holding Allgens Medical Technology or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. AECC Aviation Power
Performance |
| Timeline |
| Allgens Medical Tech |
| AECC Aviation Power |
Allgens Medical and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and AECC Aviation
The main advantage of trading using opposite Allgens Medical and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical 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.| Allgens Medical vs. Shandong Longquan Pipeline | Allgens Medical vs. Yan Tai Shuang | Allgens Medical vs. Ningbo Fujia Industrial | Allgens Medical vs. Sichuan Yahua Industrial |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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