Correlation Between AerSale Corp and Sligro Food
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Sligro Food Group, you can compare the effects of market volatilities on AerSale Corp and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Sligro Food.
Diversification Opportunities for AerSale Corp and Sligro Food
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AerSale and Sligro is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of AerSale Corp i.e., AerSale Corp and Sligro Food go up and down completely randomly.
Pair Corralation between AerSale Corp and Sligro Food
Given the investment horizon of 90 days AerSale Corp is expected to generate 2.15 times more return on investment than Sligro Food. However, AerSale Corp is 2.15 times more volatile than Sligro Food Group. It trades about 0.14 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.06 per unit of risk. If you would invest 479.00 in AerSale Corp on November 2, 2024 and sell it today you would earn a total of 201.00 from holding AerSale Corp or generate 41.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.26% |
| Values | Daily Returns |
AerSale Corp vs. Sligro Food Group
Performance |
| Timeline |
| AerSale Corp |
| Sligro Food Group |
AerSale Corp and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Sligro Food
The main advantage of trading using opposite AerSale Corp and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food'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 |
| Sligro Food vs. Wizz Air Holdings | Sligro Food vs. Alaska Air Group | Sligro Food vs. LATAM Airlines Group | Sligro Food vs. Mesa Air Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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