Correlation Between Air T and Addentax Group
Can any of the company-specific risk be diversified away by investing in both Air T and Addentax Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Air T and Addentax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air T Inc and Addentax Group Corp, you can compare the effects of market volatilities on Air T and Addentax Group 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 Air T with a short position of Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air T and Addentax Group.
Diversification Opportunities for Air T and Addentax Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Addentax is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Air T Inc and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp and Air T 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 Air T Inc are associated (or correlated) with Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of Air T i.e., Air T and Addentax Group go up and down completely randomly.
Pair Corralation between Air T and Addentax Group
Given the investment horizon of 90 days Air T Inc is expected to generate 1.23 times more return on investment than Addentax Group. However, Air T is 1.23 times more volatile than Addentax Group Corp. It trades about 0.12 of its potential returns per unit of risk. Addentax Group Corp is currently generating about -0.12 per unit of risk. If you would invest 1,605 in Air T Inc on August 24, 2024 and sell it today you would earn a total of 227.00 from holding Air T Inc or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air T Inc vs. Addentax Group Corp
Performance |
| Timeline |
| Air T Inc |
| Addentax Group Corp |
Air T and Addentax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air T and Addentax Group
The main advantage of trading using opposite Air T and Addentax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air T position performs unexpectedly, Addentax Group 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 Addentax Group will offset losses from the drop in Addentax Group's long position.| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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