Correlation Between AerSale Corp and MFA Financial
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and MFA Financial 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 MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and MFA Financial SR, you can compare the effects of market volatilities on AerSale Corp and MFA Financial 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 MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and MFA Financial.
Diversification Opportunities for AerSale Corp and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AerSale and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR 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 MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of AerSale Corp i.e., AerSale Corp and MFA Financial go up and down completely randomly.
Pair Corralation between AerSale Corp and MFA Financial
If you would invest (100.00) in MFA Financial SR on September 25, 2024 and sell it today you would earn a total of 100.00 from holding MFA Financial SR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AerSale Corp vs. MFA Financial SR
Performance |
| Timeline |
| AerSale Corp |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AerSale Corp and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and MFA Financial
The main advantage of trading using opposite AerSale Corp and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, MFA Financial 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 MFA Financial will offset losses from the drop in MFA Financial'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 |
| MFA Financial vs. Barrick Gold Corp | MFA Financial vs. Uranium Energy Corp | MFA Financial vs. AerSale Corp | MFA Financial vs. Albertsons Companies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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