Correlation Between AerSale Corp and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Saker 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 Saker 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 Saker Aviation Services, you can compare the effects of market volatilities on AerSale Corp and Saker 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 Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Saker Aviation.
Diversification Opportunities for AerSale Corp and Saker Aviation
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AerSale and Saker is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services 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 Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of AerSale Corp i.e., AerSale Corp and Saker Aviation go up and down completely randomly.
Pair Corralation between AerSale Corp and Saker Aviation
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.34 times more return on investment than Saker Aviation. However, AerSale Corp is 2.91 times less risky than Saker Aviation. It trades about 0.41 of its potential returns per unit of risk. Saker Aviation Services is currently generating about -0.14 per unit of risk. If you would invest 516.00 in AerSale Corp on August 25, 2024 and sell it today you would earn a total of 141.00 from holding AerSale Corp or generate 27.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Saker Aviation Services
Performance |
| Timeline |
| AerSale Corp |
| Saker Aviation Services |
AerSale Corp and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Saker Aviation
The main advantage of trading using opposite AerSale Corp and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Saker 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 Saker Aviation will offset losses from the drop in Saker 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 |
| Saker Aviation vs. Element Solutions | Saker Aviation vs. Orion Engineered Carbons | Saker Aviation vs. Minerals Technologies | Saker Aviation vs. Ingevity Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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