Correlation Between AerSale Corp and Stingray
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Stingray 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 Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Stingray Group, you can compare the effects of market volatilities on AerSale Corp and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Stingray.
Diversification Opportunities for AerSale Corp and Stingray
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AerSale and Stingray is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of AerSale Corp i.e., AerSale Corp and Stingray go up and down completely randomly.
Pair Corralation between AerSale Corp and Stingray
Given the investment horizon of 90 days AerSale Corp is expected to generate 1.57 times more return on investment than Stingray. However, AerSale Corp is 1.57 times more volatile than Stingray Group. It trades about 0.39 of its potential returns per unit of risk. Stingray Group is currently generating about -0.21 per unit of risk. If you would invest 616.00 in AerSale Corp on November 3, 2024 and sell it today you would earn a total of 61.00 from holding AerSale Corp or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
AerSale Corp vs. Stingray Group
Performance |
| Timeline |
| AerSale Corp |
| Stingray Group |
AerSale Corp and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Stingray
The main advantage of trading using opposite AerSale Corp and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
| Stingray vs. KVH Industries | Stingray vs. Sphere Entertainment Co | Stingray vs. Hasbro Inc | Stingray vs. Iridium Communications |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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