Correlation Between China Aircraft and Blue World
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Blue World 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 Blue World 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 Blue World Acquisition, you can compare the effects of market volatilities on China Aircraft and Blue World 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 Blue World. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Blue World.
Diversification Opportunities for China Aircraft and Blue World
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Blue is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Blue World Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue World Acquisition 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 Blue World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue World Acquisition has no effect on the direction of China Aircraft i.e., China Aircraft and Blue World go up and down completely randomly.
Pair Corralation between China Aircraft and Blue World
If you would invest 350.00 in Blue World Acquisition on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Blue World Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
China Aircraft Leasing vs. Blue World Acquisition
Performance |
| Timeline |
| China Aircraft Leasing |
| Blue World Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Aircraft and Blue World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Blue World
The main advantage of trading using opposite China Aircraft and Blue World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Blue World 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 Blue World will offset losses from the drop in Blue World's long position.| China Aircraft vs. BRP Inc | China Aircraft vs. Genfit | China Aircraft vs. Hasbro Inc | China Aircraft vs. JD Sports Fashion |
| Blue World vs. TFI International | Blue World vs. Proficient Auto Logistics, | Blue World vs. Yuexiu Transport Infrastructure | Blue World vs. Sun Country Airlines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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