Correlation Between AerSale Corp and Citizens
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Citizens 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 Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Citizens, you can compare the effects of market volatilities on AerSale Corp and Citizens 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 Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Citizens.
Diversification Opportunities for AerSale Corp and Citizens
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AerSale and Citizens is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens 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 Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of AerSale Corp i.e., AerSale Corp and Citizens go up and down completely randomly.
Pair Corralation between AerSale Corp and Citizens
Given the investment horizon of 90 days AerSale Corp is expected to generate 1.54 times less return on investment than Citizens. But when comparing it to its historical volatility, AerSale Corp is 1.65 times less risky than Citizens. It trades about 0.16 of its potential returns per unit of risk. Citizens is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Citizens on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Citizens or generate 47.37% 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. Citizens
Performance |
| Timeline |
| AerSale Corp |
| Citizens |
AerSale Corp and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Citizens
The main advantage of trading using opposite AerSale Corp and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Citizens 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 Citizens will offset losses from the drop in Citizens' 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 |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |