Correlation Between AerSale Corp and Genocea Biosciences
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Genocea Biosciences 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 Genocea Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Genocea Biosciences, you can compare the effects of market volatilities on AerSale Corp and Genocea Biosciences 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 Genocea Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Genocea Biosciences.
Diversification Opportunities for AerSale Corp and Genocea Biosciences
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AerSale and Genocea is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Genocea Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genocea Biosciences 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 Genocea Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genocea Biosciences has no effect on the direction of AerSale Corp i.e., AerSale Corp and Genocea Biosciences go up and down completely randomly.
Pair Corralation between AerSale Corp and Genocea Biosciences
If you would invest 0.02 in Genocea Biosciences on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Genocea Biosciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
AerSale Corp vs. Genocea Biosciences
Performance |
| Timeline |
| AerSale Corp |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AerSale Corp and Genocea Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Genocea Biosciences
The main advantage of trading using opposite AerSale Corp and Genocea Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Genocea Biosciences 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 Genocea Biosciences will offset losses from the drop in Genocea Biosciences' 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 |
| Genocea Biosciences vs. PVH Corp | Genocea Biosciences vs. Nike Inc | Genocea Biosciences vs. Citi Trends | Genocea Biosciences vs. Zumiez Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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