Correlation Between AerSale Corp and Beijing Capital
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Beijing Capital 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 Beijing Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Beijing Capital International, you can compare the effects of market volatilities on AerSale Corp and Beijing Capital 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 Beijing Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Beijing Capital.
Diversification Opportunities for AerSale Corp and Beijing Capital
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerSale and Beijing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Beijing Capital International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Capital Inte 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 Beijing Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Capital Inte has no effect on the direction of AerSale Corp i.e., AerSale Corp and Beijing Capital go up and down completely randomly.
Pair Corralation between AerSale Corp and Beijing Capital
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.3 times more return on investment than Beijing Capital. However, AerSale Corp is 3.38 times less risky than Beijing Capital. It trades about 0.19 of its potential returns per unit of risk. Beijing Capital International is currently generating about 0.04 per unit of risk. If you would invest 505.00 in AerSale Corp on August 29, 2024 and sell it today you would earn a total of 123.00 from holding AerSale Corp or generate 24.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
AerSale Corp vs. Beijing Capital International
Performance |
| Timeline |
| AerSale Corp |
| Beijing Capital Inte |
AerSale Corp and Beijing Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Beijing Capital
The main advantage of trading using opposite AerSale Corp and Beijing Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Beijing Capital 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 Beijing Capital will offset losses from the drop in Beijing Capital'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 |
| Beijing Capital vs. Aena SME SA | Beijing Capital vs. Aena SME SA | Beijing Capital vs. Aeroports de Paris | Beijing Capital vs. Constellation Energy Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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