Correlation Between AAR Corp and Sidus Space
Can any of the company-specific risk be diversified away by investing in both AAR Corp and Sidus Space 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 AAR Corp and Sidus Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAR Corp and Sidus Space, you can compare the effects of market volatilities on AAR Corp and Sidus Space 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 AAR Corp with a short position of Sidus Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAR Corp and Sidus Space.
Diversification Opportunities for AAR Corp and Sidus Space
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAR and Sidus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AAR Corp and Sidus Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidus Space and AAR Corp 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 AAR Corp are associated (or correlated) with Sidus Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidus Space has no effect on the direction of AAR Corp i.e., AAR Corp and Sidus Space go up and down completely randomly.
Pair Corralation between AAR Corp and Sidus Space
Considering the 90-day investment horizon AAR Corp is expected to generate 0.17 times more return on investment than Sidus Space. However, AAR Corp is 6.01 times less risky than Sidus Space. It trades about 0.06 of its potential returns per unit of risk. Sidus Space is currently generating about -0.03 per unit of risk. If you would invest 6,709 in AAR Corp on November 9, 2024 and sell it today you would earn a total of 96.00 from holding AAR Corp or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAR Corp vs. Sidus Space
Performance |
| Timeline |
| AAR Corp |
| Sidus Space |
AAR Corp and Sidus Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAR Corp and Sidus Space
The main advantage of trading using opposite AAR Corp and Sidus Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAR Corp position performs unexpectedly, Sidus Space 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 Sidus Space will offset losses from the drop in Sidus Space's long position.| AAR Corp vs. Curtiss Wright | AAR Corp vs. Hexcel | AAR Corp vs. Moog Inc | AAR Corp vs. Ducommun Incorporated |
| Sidus Space vs. Intelligent Living Application | Sidus Space vs. Quoin Pharmaceuticals Ltd | Sidus Space vs. Kidpik Corp | Sidus Space vs. Virax Biolabs Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |