Correlation Between BOC Aviation and First Ship
Can any of the company-specific risk be diversified away by investing in both BOC Aviation and First Ship 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 BOC Aviation and First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOC Aviation Limited and First Ship Lease, you can compare the effects of market volatilities on BOC Aviation and First Ship 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 BOC Aviation with a short position of First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOC Aviation and First Ship.
Diversification Opportunities for BOC Aviation and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOC and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOC Aviation Limited and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease and BOC Aviation 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 BOC Aviation Limited are associated (or correlated) with First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of BOC Aviation i.e., BOC Aviation and First Ship go up and down completely randomly.
Pair Corralation between BOC Aviation and First Ship
If you would invest 784.00 in BOC Aviation Limited on September 25, 2024 and sell it today you would earn a total of 21.00 from holding BOC Aviation Limited or generate 2.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BOC Aviation Limited vs. First Ship Lease
Performance |
Timeline |
BOC Aviation Limited |
First Ship Lease |
BOC Aviation and First Ship Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BOC Aviation and First Ship
The main advantage of trading using opposite BOC Aviation and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOC Aviation position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.BOC Aviation vs. Black Diamond Group | BOC Aviation vs. Alta Equipment Group | BOC Aviation vs. Fortress Transportation and | BOC Aviation vs. Triton International Limited |
First Ship vs. Black Diamond Group | First Ship vs. Alta Equipment Group | First Ship vs. BOC Aviation Limited | First Ship vs. Fortress Transportation and |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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