Correlation Between China Aircraft and Stagwell
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on China Aircraft and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Stagwell.
Diversification Opportunities for China Aircraft and Stagwell
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Stagwell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of China Aircraft i.e., China Aircraft and Stagwell go up and down completely randomly.
Pair Corralation between China Aircraft and Stagwell
If you would invest 640.00 in Stagwell on November 29, 2024 and sell it today you would earn a total of 33.00 from holding Stagwell or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Stagwell
Performance |
| Timeline |
| China Aircraft Leasing |
| Stagwell |
China Aircraft and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Stagwell
The main advantage of trading using opposite China Aircraft and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| China Aircraft vs. Sonos Inc | China Aircraft vs. The Gap, | China Aircraft vs. Genesco | China Aircraft vs. Boot Barn Holdings |
| Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa | Stagwell vs. Omnicom Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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