Correlation Between China Aircraft and Alta Equipment
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Alta Equipment 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 Alta Equipment 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 Alta Equipment Group, you can compare the effects of market volatilities on China Aircraft and Alta Equipment 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 Alta Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Alta Equipment.
Diversification Opportunities for China Aircraft and Alta Equipment
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Alta is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Alta Equipment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Equipment Group 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 Alta Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Equipment Group has no effect on the direction of China Aircraft i.e., China Aircraft and Alta Equipment go up and down completely randomly.
Pair Corralation between China Aircraft and Alta Equipment
If you would invest 665.00 in Alta Equipment Group on August 28, 2024 and sell it today you would earn a total of 147.00 from holding Alta Equipment Group or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Aircraft Leasing vs. Alta Equipment Group
Performance |
| Timeline |
| China Aircraft Leasing |
| Alta Equipment Group |
China Aircraft and Alta Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Alta Equipment
The main advantage of trading using opposite China Aircraft and Alta Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Alta Equipment 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 Alta Equipment will offset losses from the drop in Alta Equipment's long position.| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
| Alta Equipment vs. PROG Holdings | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Mega Matrix Corp | Alta Equipment vs. FTAI Aviation Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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