Correlation Between AerSale Corp and NeueHealth
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and NeueHealth 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 NeueHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and NeueHealth, you can compare the effects of market volatilities on AerSale Corp and NeueHealth 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 NeueHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and NeueHealth.
Diversification Opportunities for AerSale Corp and NeueHealth
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AerSale and NeueHealth is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and NeueHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeueHealth 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 NeueHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeueHealth has no effect on the direction of AerSale Corp i.e., AerSale Corp and NeueHealth go up and down completely randomly.
Pair Corralation between AerSale Corp and NeueHealth
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.83 times more return on investment than NeueHealth. However, AerSale Corp is 1.2 times less risky than NeueHealth. It trades about 0.12 of its potential returns per unit of risk. NeueHealth is currently generating about -0.02 per unit of risk. If you would invest 513.00 in AerSale Corp on September 12, 2024 and sell it today you would earn a total of 107.00 from holding AerSale Corp or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. NeueHealth
Performance |
| Timeline |
| AerSale Corp |
| NeueHealth |
AerSale Corp and NeueHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and NeueHealth
The main advantage of trading using opposite AerSale Corp and NeueHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, NeueHealth 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 NeueHealth will offset losses from the drop in NeueHealth'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 |
| NeueHealth vs. Uber Technologies | NeueHealth vs. NL Industries | NeueHealth vs. Paysafe | NeueHealth vs. Hudson Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |