Correlation Between AerCap Holdings and Phunware
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Phunware 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 Phunware 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 Phunware, you can compare the effects of market volatilities on AerCap Holdings and Phunware 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 Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Phunware.
Diversification Opportunities for AerCap Holdings and Phunware
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerCap and Phunware is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware 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 Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Phunware go up and down completely randomly.
Pair Corralation between AerCap Holdings and Phunware
If you would invest 9,516 in AerCap Holdings NV on November 5, 2024 and sell it today you would earn a total of 44.00 from holding AerCap Holdings NV or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
AerCap Holdings NV vs. Phunware
Performance |
| Timeline |
| AerCap Holdings NV |
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AerCap Holdings and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Phunware
The main advantage of trading using opposite AerCap Holdings and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Phunware 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 Phunware will offset losses from the drop in Phunware's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Phunware vs. Integral Ad Science | Phunware vs. Cheer Holding | Phunware vs. Townsquare Media | Phunware vs. Cimpress NV |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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