Correlation Between China Aircraft and Wayside Technology
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Wayside Technology 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 Wayside Technology 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 Wayside Technology Group, you can compare the effects of market volatilities on China Aircraft and Wayside Technology 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 Wayside Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Wayside Technology.
Diversification Opportunities for China Aircraft and Wayside Technology
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Wayside is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Wayside Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayside Technology 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 Wayside Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayside Technology has no effect on the direction of China Aircraft i.e., China Aircraft and Wayside Technology go up and down completely randomly.
Pair Corralation between China Aircraft and Wayside Technology
If you would invest 3,153 in Wayside Technology Group on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Wayside Technology Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
China Aircraft Leasing vs. Wayside Technology Group
Performance |
| Timeline |
| China Aircraft Leasing |
| Wayside Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Aircraft and Wayside Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Wayside Technology
The main advantage of trading using opposite China Aircraft and Wayside Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Wayside Technology 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 Wayside Technology will offset losses from the drop in Wayside Technology's long position.| China Aircraft vs. JD Sports Fashion | China Aircraft vs. Highway Holdings Limited | China Aircraft vs. Planet Fitness | China Aircraft vs. Hasbro Inc |
| Wayside Technology vs. Tenaris SA ADR | Wayside Technology vs. GameStop Corp | Wayside Technology vs. Contagious Gaming | Wayside Technology vs. China Aircraft Leasing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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