Correlation Between China Aircraft and Tiga Pilar

Can any of the company-specific risk be diversified away by investing in both China Aircraft and Tiga Pilar 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 Tiga Pilar 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 Tiga Pilar Sejahtera, you can compare the effects of market volatilities on China Aircraft and Tiga Pilar 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 Tiga Pilar. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Tiga Pilar.

Diversification Opportunities for China Aircraft and Tiga Pilar

0.0

Correlation Coefficient

China Aircraft  Tiga Pilar

Pay attention - limited upside

The 3 months correlation between China and Tiga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Tiga Pilar Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiga Pilar Sejahtera 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 Tiga Pilar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiga Pilar Sejahtera has no effect on the direction of China Aircraft i.e., China Aircraft and Tiga Pilar go up and down completely randomly.

Pair Corralation between China Aircraft and Tiga Pilar

If you would invest (100.00) in Tiga Pilar Sejahtera on September 21, 2024 and sell it today you would earn a total of  100.00  from holding Tiga Pilar Sejahtera or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

China Aircraft Leasing  vs.  Tiga Pilar Sejahtera

China Aircraft Leasing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China Aircraft Leasing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Tiga Pilar Sejahtera

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tiga Pilar Sejahtera has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tiga Pilar is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with China Aircraft and Tiga Pilar

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

The idea behind China Aircraft Leasing and Tiga Pilar Sejahtera 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.