Correlation Between Hasbro and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Hasbro 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 Hasbro and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and China Aircraft Leasing, you can compare the effects of market volatilities on Hasbro 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 Hasbro with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and China Aircraft.
Diversification Opportunities for Hasbro and China Aircraft
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hasbro and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc 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 Hasbro 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 Hasbro Inc 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 Hasbro i.e., Hasbro and China Aircraft go up and down completely randomly.
Pair Corralation between Hasbro and China Aircraft
If you would invest 6,208 in Hasbro Inc on September 14, 2024 and sell it today you would earn a total of 197.00 from holding Hasbro Inc or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hasbro Inc vs. China Aircraft Leasing
Performance |
| Timeline |
| Hasbro Inc |
| China Aircraft Leasing |
Hasbro and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and China Aircraft
The main advantage of trading using opposite Hasbro and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro 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.| Hasbro vs. Clarus Corp | Hasbro vs. Johnson Outdoors | Hasbro vs. JAKKS Pacific | Hasbro vs. OneSpaWorld Holdings |
| China Aircraft vs. JD Sports Fashion | China Aircraft vs. Highway Holdings Limited | China Aircraft vs. Planet Fitness | China Aircraft vs. Hasbro Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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