Correlation Between China Aircraft and FlexShopper
Can any of the company-specific risk be diversified away by investing in both China Aircraft and FlexShopper 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 China Aircraft and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and FlexShopper, you can compare the effects of market volatilities on China Aircraft and FlexShopper 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 China Aircraft with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and FlexShopper.
Diversification Opportunities for China Aircraft and FlexShopper
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and FlexShopper is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and China Aircraft 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 China Aircraft Leasing are associated (or correlated) with FlexShopper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShopper has no effect on the direction of China Aircraft i.e., China Aircraft and FlexShopper go up and down completely randomly.
Pair Corralation between China Aircraft and FlexShopper
If you would invest 43.00 in China Aircraft Leasing on January 30, 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 | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Aircraft Leasing vs. FlexShopper
Performance |
Timeline |
China Aircraft Leasing |
FlexShopper |
China Aircraft and FlexShopper Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Aircraft and FlexShopper
The main advantage of trading using opposite China Aircraft and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, FlexShopper 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 FlexShopper will offset losses from the drop in FlexShopper's long position.China Aircraft vs. United Rentals | China Aircraft vs. AerCap Holdings NV | China Aircraft vs. U Haul Holding | China Aircraft vs. U Haul Holding |
FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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