Correlation Between China Aircraft and Crimson Wine

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Crimson Wine 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 Crimson Wine 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 Crimson Wine, you can compare the effects of market volatilities on China Aircraft and Crimson Wine 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 Crimson Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Crimson Wine.

Diversification Opportunities for China Aircraft and Crimson Wine

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between China and Crimson is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Crimson Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crimson Wine 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 Crimson Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crimson Wine has no effect on the direction of China Aircraft i.e., China Aircraft and Crimson Wine go up and down completely randomly.

Pair Corralation between China Aircraft and Crimson Wine

Assuming the 90 days horizon China Aircraft Leasing is expected to generate 0.5 times more return on investment than Crimson Wine. However, China Aircraft Leasing is 1.98 times less risky than Crimson Wine. It trades about 0.13 of its potential returns per unit of risk. Crimson Wine is currently generating about 0.03 per unit of risk. If you would invest  44.00  in China Aircraft Leasing on May 7, 2025 and sell it today you would earn a total of  3.00  from holding China Aircraft Leasing or generate 6.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy96.83%
ValuesDaily Returns

China Aircraft Leasing  vs.  Crimson Wine

 Performance 
       Timeline  
China Aircraft Leasing 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in China Aircraft Leasing are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, China Aircraft may actually be approaching a critical reversion point that can send shares even higher in September 2025.
Crimson Wine 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Crimson Wine are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Crimson Wine is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

China Aircraft and Crimson Wine Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Aircraft and Crimson Wine

The main advantage of trading using opposite China Aircraft and Crimson Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Crimson Wine 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 Crimson Wine will offset losses from the drop in Crimson Wine's long position.
The idea behind China Aircraft Leasing and Crimson Wine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Global Correlations
Find global opportunities by holding instruments from different markets
FinTech Suite
Use AI to screen and filter profitable investment opportunities