Correlation Between AerSale Corp and Cheche Group
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Cheche Group 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 Cheche Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Cheche Group Class, you can compare the effects of market volatilities on AerSale Corp and Cheche Group 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 Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Cheche Group.
Diversification Opportunities for AerSale Corp and Cheche Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerSale and Cheche is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class 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 Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of AerSale Corp i.e., AerSale Corp and Cheche Group go up and down completely randomly.
Pair Corralation between AerSale Corp and Cheche Group
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.68 times more return on investment than Cheche Group. However, AerSale Corp is 1.47 times less risky than Cheche Group. It trades about 0.46 of its potential returns per unit of risk. Cheche Group Class is currently generating about -0.05 per unit of risk. If you would invest 611.00 in AerSale Corp on November 9, 2024 and sell it today you would earn a total of 75.00 from holding AerSale Corp or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Cheche Group Class
Performance |
| Timeline |
| AerSale Corp |
| Cheche Group Class |
AerSale Corp and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Cheche Group
The main advantage of trading using opposite AerSale Corp and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Cheche Group 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 Cheche Group will offset losses from the drop in Cheche Group'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 |
| Cheche Group vs. NETGEAR | Cheche Group vs. Fevertree Drinks Plc | Cheche Group vs. China Resources Beer | Cheche Group vs. Westrock Coffee |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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