Correlation Between China Aircraft and ROC Energy
Can any of the company-specific risk be diversified away by investing in both China Aircraft and ROC Energy 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 ROC Energy 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 ROC Energy Acquisition, you can compare the effects of market volatilities on China Aircraft and ROC Energy 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 ROC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and ROC Energy.
Diversification Opportunities for China Aircraft and ROC Energy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and ROC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and ROC Energy Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROC Energy 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 ROC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROC Energy Acquisition has no effect on the direction of China Aircraft i.e., China Aircraft and ROC Energy go up and down completely randomly.
Pair Corralation between China Aircraft and ROC Energy
If you would invest 603.00 in ROC Energy Acquisition on September 12, 2024 and sell it today you would earn a total of 0.00 from holding ROC Energy Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. ROC Energy Acquisition
Performance |
| Timeline |
| China Aircraft Leasing |
| ROC Energy Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Aircraft and ROC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and ROC Energy
The main advantage of trading using opposite China Aircraft and ROC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, ROC Energy 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 ROC Energy will offset losses from the drop in ROC Energy's long position.| China Aircraft vs. United Rentals | China Aircraft vs. Ashtead Gro | China Aircraft vs. AerCap Holdings NV | China Aircraft vs. Fortress Transp Infra |
| ROC Energy vs. Papaya Growth Opportunity | ROC Energy vs. SEI Investments | ROC Energy vs. Kaltura | ROC Energy vs. Paltalk |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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