Correlation Between Chorus Aviation and German American
Can any of the company-specific risk be diversified away by investing in both Chorus Aviation and German American 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 Chorus Aviation and German American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorus Aviation and German American Bancorp, you can compare the effects of market volatilities on Chorus Aviation and German American 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 Chorus Aviation with a short position of German American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorus Aviation and German American.
Diversification Opportunities for Chorus Aviation and German American
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chorus and German is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chorus Aviation and German American Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on German American Bancorp and Chorus Aviation 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 Chorus Aviation are associated (or correlated) with German American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of German American Bancorp has no effect on the direction of Chorus Aviation i.e., Chorus Aviation and German American go up and down completely randomly.
Pair Corralation between Chorus Aviation and German American
Assuming the 90 days horizon Chorus Aviation is expected to generate 1.07 times more return on investment than German American. However, Chorus Aviation is 1.07 times more volatile than German American Bancorp. It trades about 0.15 of its potential returns per unit of risk. German American Bancorp is currently generating about 0.15 per unit of risk. If you would invest 164.00 in Chorus Aviation on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Chorus Aviation or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Chorus Aviation vs. German American Bancorp
Performance |
| Timeline |
| Chorus Aviation |
| German American Bancorp |
Chorus Aviation and German American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorus Aviation and German American
The main advantage of trading using opposite Chorus Aviation and German American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorus Aviation position performs unexpectedly, German American 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 German American will offset losses from the drop in German American's long position.| Chorus Aviation vs. Joby Aviation | Chorus Aviation vs. Wheels Up Experience | Chorus Aviation vs. AerSale Corp | Chorus Aviation vs. Grupo Aeroportuario del |
| German American vs. Lakeland Financial | German American vs. Great Southern Bancorp | German American vs. First Merchants | German American vs. First Financial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |