Correlation Between China Aircraft and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Mayfair Gold 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 Mayfair Gold 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 Mayfair Gold Corp, you can compare the effects of market volatilities on China Aircraft and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Mayfair Gold.
Diversification Opportunities for China Aircraft and Mayfair Gold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Mayfair is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of China Aircraft i.e., China Aircraft and Mayfair Gold go up and down completely randomly.
Pair Corralation between China Aircraft and Mayfair Gold
If you would invest 40.00 in China Aircraft Leasing on August 29, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Mayfair Gold Corp
Performance |
| Timeline |
| China Aircraft Leasing |
| Mayfair Gold Corp |
China Aircraft and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Mayfair Gold
The main advantage of trading using opposite China Aircraft and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
| Mayfair Gold vs. Aurion Resources | Mayfair Gold vs. Liberty Gold Corp | Mayfair Gold vs. Orezone Gold Corp | Mayfair Gold vs. Fortuna Silver Mines |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |