Correlation Between KWG Group and China Aircraft
Can any of the company-specific risk be diversified away by investing in both KWG Group 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 KWG Group and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KWG Group Holdings and China Aircraft Leasing, you can compare the effects of market volatilities on KWG Group 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 KWG Group with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of KWG Group and China Aircraft.
Diversification Opportunities for KWG Group and China Aircraft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KWG and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KWG Group Holdings 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 KWG Group 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 KWG Group Holdings 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 KWG Group i.e., KWG Group and China Aircraft go up and down completely randomly.
Pair Corralation between KWG Group and China Aircraft
Assuming the 90 days horizon KWG Group Holdings is expected to under-perform the China Aircraft. But the pink sheet apears to be less risky and, when comparing its historical volatility, KWG Group Holdings is 1.59 times less risky than China Aircraft. The pink sheet trades about -0.05 of its potential returns per unit of risk. The China Aircraft Leasing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 13.00 in China Aircraft Leasing on September 4, 2024 and sell it today you would earn a total of 27.00 from holding China Aircraft Leasing or generate 207.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
KWG Group Holdings vs. China Aircraft Leasing
Performance |
| Timeline |
| KWG Group Holdings |
| China Aircraft Leasing |
KWG Group and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KWG Group and China Aircraft
The main advantage of trading using opposite KWG Group and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KWG Group 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.| KWG Group vs. Apple Inc | KWG Group vs. Microsoft | KWG Group vs. Amazon Inc | KWG Group vs. Alphabet Inc Class C |
| China Aircraft vs. Playtika Holding Corp | China Aircraft vs. Eldorado Gold Corp | China Aircraft vs. Xponential Fitness | China Aircraft vs. Highway Holdings Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |