Correlation Between AerCap Holdings and Inuvo
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Inuvo 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 Inuvo 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 Inuvo Inc, you can compare the effects of market volatilities on AerCap Holdings and Inuvo 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 Inuvo. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Inuvo.
Diversification Opportunities for AerCap Holdings and Inuvo
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AerCap and Inuvo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Inuvo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inuvo Inc 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 Inuvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inuvo Inc has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Inuvo go up and down completely randomly.
Pair Corralation between AerCap Holdings and Inuvo
Considering the 90-day investment horizon AerCap Holdings is expected to generate 1.44 times less return on investment than Inuvo. But when comparing it to its historical volatility, AerCap Holdings NV is 5.3 times less risky than Inuvo. It trades about 0.21 of its potential returns per unit of risk. Inuvo Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Inuvo Inc on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Inuvo Inc or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerCap Holdings NV vs. Inuvo Inc
Performance |
| Timeline |
| AerCap Holdings NV |
| Inuvo Inc |
AerCap Holdings and Inuvo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Inuvo
The main advantage of trading using opposite AerCap Holdings and Inuvo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Inuvo 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 Inuvo will offset losses from the drop in Inuvo's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Inuvo vs. MGO Global Common | Inuvo vs. Baosheng Media Group | Inuvo vs. National CineMedia | Inuvo vs. Xunlei Ltd Adr |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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