Correlation Between AerSale Corp and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Grupo Aeroportuario 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 Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Grupo Aeroportuario del, you can compare the effects of market volatilities on AerSale Corp and Grupo Aeroportuario 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 Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Grupo Aeroportuario.
Diversification Opportunities for AerSale Corp and Grupo Aeroportuario
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AerSale and Grupo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del 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 Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of AerSale Corp i.e., AerSale Corp and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between AerSale Corp and Grupo Aeroportuario
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.7 times more return on investment than Grupo Aeroportuario. However, AerSale Corp is 1.44 times less risky than Grupo Aeroportuario. It trades about 0.23 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.16 per unit of risk. If you would invest 612.00 in AerSale Corp on October 20, 2024 and sell it today you would earn a total of 43.00 from holding AerSale Corp or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Grupo Aeroportuario del
Performance |
| Timeline |
| AerSale Corp |
| Grupo Aeroportuario del |
AerSale Corp and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Grupo Aeroportuario
The main advantage of trading using opposite AerSale Corp and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario'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 |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Aeroports de Paris |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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