Correlation Between AerSale Corp and Joby Aviation
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Joby Aviation 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 Joby Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Joby Aviation, you can compare the effects of market volatilities on AerSale Corp and Joby Aviation 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 Joby Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Joby Aviation.
Diversification Opportunities for AerSale Corp and Joby Aviation
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AerSale and Joby is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Joby Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joby Aviation 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 Joby Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joby Aviation has no effect on the direction of AerSale Corp i.e., AerSale Corp and Joby Aviation go up and down completely randomly.
Pair Corralation between AerSale Corp and Joby Aviation
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.3 times more return on investment than Joby Aviation. However, AerSale Corp is 3.33 times less risky than Joby Aviation. It trades about 0.46 of its potential returns per unit of risk. Joby Aviation is currently generating about -0.2 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Joby Aviation
Performance |
| Timeline |
| AerSale Corp |
| Joby Aviation |
AerSale Corp and Joby Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Joby Aviation
The main advantage of trading using opposite AerSale Corp and Joby Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Joby Aviation 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 Joby Aviation will offset losses from the drop in Joby Aviation'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 |
| Joby Aviation vs. Archer Aviation | Joby Aviation vs. Lilium NV | Joby Aviation vs. Blade Air Mobility | Joby Aviation vs. Rocket Lab USA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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