Correlation Between China Aircraft and Allient
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Allient 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 China Aircraft and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Allient, you can compare the effects of market volatilities on China Aircraft and Allient 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 China Aircraft with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Allient.
Diversification Opportunities for China Aircraft and Allient
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Allient is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and China Aircraft 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 China Aircraft Leasing are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of China Aircraft i.e., China Aircraft and Allient go up and down completely randomly.
Pair Corralation between China Aircraft and Allient
If you would invest 2,447 in Allient on September 14, 2024 and sell it today you would earn a total of 246.00 from holding Allient or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Allient
Performance |
| Timeline |
| China Aircraft Leasing |
| Allient |
China Aircraft and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Allient
The main advantage of trading using opposite China Aircraft and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| China Aircraft vs. JD Sports Fashion | China Aircraft vs. Highway Holdings Limited | China Aircraft vs. Planet Fitness | China Aircraft vs. Hasbro Inc |
| Allient vs. Entravision Communications | Allient vs. Marchex | Allient vs. Sable Offshore Corp | Allient vs. CarsalesCom Ltd ADR |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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