Correlation Between AerSale Corp and Brand Engagement
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Brand Engagement 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 Brand Engagement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Brand Engagement Network, you can compare the effects of market volatilities on AerSale Corp and Brand Engagement 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 Brand Engagement. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Brand Engagement.
Diversification Opportunities for AerSale Corp and Brand Engagement
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AerSale and Brand is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Brand Engagement Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brand Engagement Network 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 Brand Engagement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brand Engagement Network has no effect on the direction of AerSale Corp i.e., AerSale Corp and Brand Engagement go up and down completely randomly.
Pair Corralation between AerSale Corp and Brand Engagement
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.07 times more return on investment than Brand Engagement. However, AerSale Corp is 13.64 times less risky than Brand Engagement. It trades about 0.36 of its potential returns per unit of risk. Brand Engagement Network is currently generating about -0.01 per unit of risk. If you would invest 615.00 in AerSale Corp on October 31, 2024 and sell it today you would earn a total of 64.00 from holding AerSale Corp or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
AerSale Corp vs. Brand Engagement Network
Performance |
| Timeline |
| AerSale Corp |
| Brand Engagement Network |
AerSale Corp and Brand Engagement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Brand Engagement
The main advantage of trading using opposite AerSale Corp and Brand Engagement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Brand Engagement 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 Brand Engagement will offset losses from the drop in Brand Engagement'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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