Correlation Between First Ship and China Aircraft
Can any of the company-specific risk be diversified away by investing in both First Ship and China Aircraft 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 First Ship and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and China Aircraft Leasing, you can compare the effects of market volatilities on First Ship and China Aircraft 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 First Ship with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and China Aircraft.
Diversification Opportunities for First Ship and China Aircraft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing and First Ship 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 First Ship Lease are associated (or correlated) with China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of First Ship i.e., First Ship and China Aircraft go up and down completely randomly.
Pair Corralation between First Ship and China Aircraft
If you would invest 40.00 in China Aircraft Leasing on August 28, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. China Aircraft Leasing
Performance |
| Timeline |
| First Ship Lease |
| China Aircraft Leasing |
First Ship and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and China Aircraft
The main advantage of trading using opposite First Ship and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| First Ship vs. United Rentals | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra | First Ship vs. U Haul Holding |
| China Aircraft vs. Grocery Outlet Holding | China Aircraft vs. Turning Point Brands | China Aircraft vs. Marfrig Global Foods | China Aircraft vs. FitLife Brands, Common |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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