Correlation Between AerCap Holdings and Eshallgo
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Eshallgo 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 AerCap Holdings and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerCap Holdings NV and Eshallgo Class A, you can compare the effects of market volatilities on AerCap Holdings and Eshallgo 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 AerCap Holdings with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Eshallgo.
Diversification Opportunities for AerCap Holdings and Eshallgo
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AerCap and Eshallgo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and AerCap Holdings 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 AerCap Holdings NV are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Eshallgo go up and down completely randomly.
Pair Corralation between AerCap Holdings and Eshallgo
Considering the 90-day investment horizon AerCap Holdings is expected to generate 62.97 times less return on investment than Eshallgo. But when comparing it to its historical volatility, AerCap Holdings NV is 70.12 times less risky than Eshallgo. It trades about 0.11 of its potential returns per unit of risk. Eshallgo Class A is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Eshallgo Class A on August 26, 2024 and sell it today you would earn a total of 375.00 from holding Eshallgo Class A or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 41.77% |
| Values | Daily Returns |
AerCap Holdings NV vs. Eshallgo Class A
Performance |
| Timeline |
| AerCap Holdings NV |
| Eshallgo Class A |
AerCap Holdings and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Eshallgo
The main advantage of trading using opposite AerCap Holdings and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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