Correlation Between China Aircraft and Global Tech
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Global Tech 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 Global Tech 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 Global Tech Industries, you can compare the effects of market volatilities on China Aircraft and Global Tech 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 Global Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Global Tech.
Diversification Opportunities for China Aircraft and Global Tech
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Global is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Global Tech Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Tech Industries 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 Global Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Tech Industries has no effect on the direction of China Aircraft i.e., China Aircraft and Global Tech go up and down completely randomly.
Pair Corralation between China Aircraft and Global Tech
Assuming the 90 days horizon China Aircraft is expected to generate 82.59 times less return on investment than Global Tech. But when comparing it to its historical volatility, China Aircraft Leasing is 58.18 times less risky than Global Tech. It trades about 0.16 of its potential returns per unit of risk. Global Tech Industries is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Global Tech Industries on September 5, 2025 and sell it today you would lose (10.99) from holding Global Tech Industries or give up 91.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Global Tech Industries
Performance |
| Timeline |
| China Aircraft Leasing |
| Global Tech Industries |
China Aircraft and Global Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Global Tech
The main advantage of trading using opposite China Aircraft and Global Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Global Tech 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 Global Tech will offset losses from the drop in Global Tech's long position.| China Aircraft vs. Glorywin Entertainment Group | China Aircraft vs. Mayfair Gold Corp | China Aircraft vs. Tencent Music Entertainment | China Aircraft vs. Wizz Air Holdings |
| Global Tech vs. Energold Drilling Corp | Global Tech vs. Precision Drilling | Global Tech vs. Cabo Drilling Corp | Global Tech vs. CVR Medical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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