Correlation Between China Aircraft and Rivian Automotive
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive, you can compare the effects of market volatilities on China Aircraft and Rivian Automotive 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 Rivian Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Rivian Automotive.
Diversification Opportunities for China Aircraft and Rivian Automotive
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Rivian is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Rivian Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivian Automotive 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 Rivian Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivian Automotive has no effect on the direction of China Aircraft i.e., China Aircraft and Rivian Automotive go up and down completely randomly.
Pair Corralation between China Aircraft and Rivian Automotive
If you would invest 1,086 in Rivian Automotive on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Rivian Automotive or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Aircraft Leasing vs. Rivian Automotive
Performance |
| Timeline |
| China Aircraft Leasing |
| Rivian Automotive |
China Aircraft and Rivian Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Rivian Automotive
The main advantage of trading using opposite China Aircraft and Rivian Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Rivian Automotive 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 Rivian Automotive will offset losses from the drop in Rivian Automotive's long position.| China Aircraft vs. Yuexiu Transport Infrastructure | China Aircraft vs. Ihuman Inc | China Aircraft vs. One Liberty Properties | China Aircraft vs. Hafnia Limited |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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