Correlation Between AerSale Corp and Aldel Financial
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Aldel Financial 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 AerSale Corp and Aldel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Aldel Financial II, you can compare the effects of market volatilities on AerSale Corp and Aldel Financial 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 AerSale Corp with a short position of Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Aldel Financial.
Diversification Opportunities for AerSale Corp and Aldel Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AerSale and Aldel is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II and AerSale 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 AerSale Corp are associated (or correlated) with Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of AerSale Corp i.e., AerSale Corp and Aldel Financial go up and down completely randomly.
Pair Corralation between AerSale Corp and Aldel Financial
Given the investment horizon of 90 days AerSale Corp is expected to generate 25.27 times more return on investment than Aldel Financial. However, AerSale Corp is 25.27 times more volatile than Aldel Financial II. It trades about 0.23 of its potential returns per unit of risk. Aldel Financial II is currently generating about -0.04 per unit of risk. If you would invest 545.00 in AerSale Corp on August 30, 2024 and sell it today you would earn a total of 80.00 from holding AerSale Corp or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Aldel Financial II
Performance |
| Timeline |
| AerSale Corp |
| Aldel Financial II |
AerSale Corp and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Aldel Financial
The main advantage of trading using opposite AerSale Corp and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Corporacion America Airports | AerSale Corp vs. Aeroports de Paris |
| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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