Correlation Between AerCap Holdings and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Mayfair Gold 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 Mayfair Gold 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 Mayfair Gold Corp, you can compare the effects of market volatilities on AerCap Holdings and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Mayfair Gold.
Diversification Opportunities for AerCap Holdings and Mayfair Gold
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AerCap and Mayfair is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Mayfair Gold go up and down completely randomly.
Pair Corralation between AerCap Holdings and Mayfair Gold
Considering the 90-day investment horizon AerCap Holdings NV is expected to generate 0.4 times more return on investment than Mayfair Gold. However, AerCap Holdings NV is 2.47 times less risky than Mayfair Gold. It trades about 0.16 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about -0.13 per unit of risk. If you would invest 9,584 in AerCap Holdings NV on August 29, 2024 and sell it today you would earn a total of 446.00 from holding AerCap Holdings NV or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerCap Holdings NV vs. Mayfair Gold Corp
Performance |
| Timeline |
| AerCap Holdings NV |
| Mayfair Gold Corp |
AerCap Holdings and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Mayfair Gold
The main advantage of trading using opposite AerCap Holdings and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. McGrath RentCorp | AerCap Holdings vs. Mega Matrix Corp | AerCap Holdings vs. FTAI Aviation Ltd |
| Mayfair Gold vs. Aurion Resources | Mayfair Gold vs. Liberty Gold Corp | Mayfair Gold vs. Orezone Gold Corp | Mayfair Gold vs. Fortuna Silver Mines |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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