Correlation Between AerSale Corp and China Aircraft
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and China Aircraft 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 China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and China Aircraft Leasing, you can compare the effects of market volatilities on AerSale Corp and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and China Aircraft.
Diversification Opportunities for AerSale Corp and China Aircraft
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AerSale and China is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of AerSale Corp i.e., AerSale Corp and China Aircraft go up and down completely randomly.
Pair Corralation between AerSale Corp and China Aircraft
If you would invest 553.00 in AerSale Corp on August 29, 2024 and sell it today you would earn a total of 75.00 from holding AerSale Corp or generate 13.56% 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. China Aircraft Leasing
Performance |
| Timeline |
| AerSale Corp |
| China Aircraft Leasing |
AerSale Corp and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and China Aircraft
The main advantage of trading using opposite AerSale Corp and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft'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 |
| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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