Correlation Between Wabash National and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Wabash National 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 Wabash National and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and China Aircraft Leasing, you can compare the effects of market volatilities on Wabash National 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 Wabash National with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and China Aircraft.
Diversification Opportunities for Wabash National and China Aircraft
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wabash and China is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National 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 Wabash National 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 Wabash National 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 Wabash National i.e., Wabash National and China Aircraft go up and down completely randomly.
Pair Corralation between Wabash National and China Aircraft
If you would invest 1,849 in Wabash National on August 29, 2024 and sell it today you would earn a total of 103.00 from holding Wabash National or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wabash National vs. China Aircraft Leasing
Performance |
| Timeline |
| Wabash National |
| China Aircraft Leasing |
Wabash National and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and China Aircraft
The main advantage of trading using opposite Wabash National and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National 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.| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
| China Aircraft vs. Yuexiu Transport Infrastructure | China Aircraft vs. Ihuman Inc | China Aircraft vs. One Liberty Properties | China Aircraft vs. Hafnia 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |