Correlation Between Saker Aviation and Beijing Capital
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Beijing Capital 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 Saker Aviation and Beijing Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Beijing Capital International, you can compare the effects of market volatilities on Saker Aviation and Beijing Capital 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 Saker Aviation with a short position of Beijing Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Beijing Capital.
Diversification Opportunities for Saker Aviation and Beijing Capital
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saker and Beijing is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Beijing Capital International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Capital Inte and Saker 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 Saker Aviation Services are associated (or correlated) with Beijing Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Capital Inte has no effect on the direction of Saker Aviation i.e., Saker Aviation and Beijing Capital go up and down completely randomly.
Pair Corralation between Saker Aviation and Beijing Capital
Given the investment horizon of 90 days Saker Aviation Services is expected to generate 0.91 times more return on investment than Beijing Capital. However, Saker Aviation Services is 1.1 times less risky than Beijing Capital. It trades about 0.07 of its potential returns per unit of risk. Beijing Capital International is currently generating about -0.07 per unit of risk. If you would invest 540.00 in Saker Aviation Services on January 21, 2024 and sell it today you would earn a total of 311.00 from holding Saker Aviation Services or generate 57.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Saker Aviation Services vs. Beijing Capital International
Performance |
| Timeline |
| Saker Aviation Services |
| Beijing Capital Inte |
Saker Aviation and Beijing Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Beijing Capital
The main advantage of trading using opposite Saker Aviation and Beijing Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Beijing Capital 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 Beijing Capital will offset losses from the drop in Beijing Capital's long position.| Saker Aviation vs. V2X Inc | Saker Aviation vs. National Presto Industries | Saker Aviation vs. Kaman | Saker Aviation vs. Woodward |
| Beijing Capital vs. Grupo Aeroportuario del | Beijing Capital vs. Grupo Aeroportuario del | Beijing Capital vs. Grupo Aeroportuario del | Beijing Capital vs. AerSale Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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