Correlation Between ScanSource and China Aircraft
Can any of the company-specific risk be diversified away by investing in both ScanSource 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 ScanSource and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and China Aircraft Leasing, you can compare the effects of market volatilities on ScanSource 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 ScanSource with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and China Aircraft.
Diversification Opportunities for ScanSource and China Aircraft
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ScanSource and China is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource 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 ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and China Aircraft go up and down completely randomly.
Pair Corralation between ScanSource and China Aircraft
Given the investment horizon of 90 days ScanSource is expected to generate 2.35 times less return on investment than China Aircraft. In addition to that, ScanSource is 1.79 times more volatile than China Aircraft Leasing. It trades about 0.03 of its total potential returns per unit of risk. China Aircraft Leasing is currently generating about 0.13 per unit of volatility. If you would invest 44.00 in China Aircraft Leasing on May 14, 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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
ScanSource vs. China Aircraft Leasing
Performance |
Timeline |
ScanSource |
China Aircraft Leasing |
ScanSource and China Aircraft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ScanSource and China Aircraft
The main advantage of trading using opposite ScanSource and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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.ScanSource vs. PC Connection | ScanSource vs. Insight Enterprises | ScanSource vs. Climb Global Solutions | ScanSource vs. Synnex |
China Aircraft vs. Zevia Pbc | China Aircraft vs. PepsiCo | China Aircraft vs. Ryanair Holdings PLC | China Aircraft vs. Eastman Kodak Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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