Correlation Between AerSale Corp and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Duluth Holdings 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 Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Duluth Holdings, you can compare the effects of market volatilities on AerSale Corp and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Duluth Holdings.
Diversification Opportunities for AerSale Corp and Duluth Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AerSale and Duluth is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of AerSale Corp i.e., AerSale Corp and Duluth Holdings go up and down completely randomly.
Pair Corralation between AerSale Corp and Duluth Holdings
Given the investment horizon of 90 days AerSale Corp is expected to under-perform the Duluth Holdings. In addition to that, AerSale Corp is 1.15 times more volatile than Duluth Holdings. It trades about -0.04 of its total potential returns per unit of risk. Duluth Holdings is currently generating about -0.02 per unit of volatility. If you would invest 617.00 in Duluth Holdings on September 4, 2024 and sell it today you would lose (228.00) from holding Duluth Holdings or give up 36.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Duluth Holdings
Performance |
| Timeline |
| AerSale Corp |
| Duluth Holdings |
AerSale Corp and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Duluth Holdings
The main advantage of trading using opposite AerSale Corp and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' 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 |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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