Correlation Between Hefei Jianghang and Parsons Corp

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Can any of the company-specific risk be diversified away by investing in both Hefei Jianghang and Parsons Corp 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 Hefei Jianghang and Parsons Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hefei Jianghang Aircraft and Parsons Corp, you can compare the effects of market volatilities on Hefei Jianghang and Parsons Corp 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 Hefei Jianghang with a short position of Parsons Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Jianghang and Parsons Corp.

Diversification Opportunities for Hefei Jianghang and Parsons Corp

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hefei and Parsons is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Jianghang Aircraft and Parsons Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parsons Corp and Hefei Jianghang 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 Hefei Jianghang Aircraft are associated (or correlated) with Parsons Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parsons Corp has no effect on the direction of Hefei Jianghang i.e., Hefei Jianghang and Parsons Corp go up and down completely randomly.

Pair Corralation between Hefei Jianghang and Parsons Corp

Assuming the 90 days trading horizon Hefei Jianghang Aircraft is expected to generate 0.46 times more return on investment than Parsons Corp. However, Hefei Jianghang Aircraft is 2.17 times less risky than Parsons Corp. It trades about 0.12 of its potential returns per unit of risk. Parsons Corp is currently generating about -0.04 per unit of risk. If you would invest  1,079  in Hefei Jianghang Aircraft on September 10, 2025 and sell it today you would earn a total of  115.00  from holding Hefei Jianghang Aircraft or generate 10.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy92.19%
ValuesDaily Returns

Hefei Jianghang Aircraft  vs.  Parsons Corp

 Performance 
       Timeline  
Hefei Jianghang Aircraft 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hefei Jianghang Aircraft are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hefei Jianghang may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Parsons Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Parsons Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Hefei Jianghang and Parsons Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hefei Jianghang and Parsons Corp

The main advantage of trading using opposite Hefei Jianghang and Parsons Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Jianghang position performs unexpectedly, Parsons Corp 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 Parsons Corp will offset losses from the drop in Parsons Corp's long position.
The idea behind Hefei Jianghang Aircraft and Parsons Corp 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.
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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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