Correlation Between AerSale Corp and U Blox
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and U Blox 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 U Blox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and u blox Holding AG, you can compare the effects of market volatilities on AerSale Corp and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and U Blox.
Diversification Opportunities for AerSale Corp and U Blox
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AerSale and UBLXF is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and u blox Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on u blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of u blox Holding has no effect on the direction of AerSale Corp i.e., AerSale Corp and U Blox go up and down completely randomly.
Pair Corralation between AerSale Corp and U Blox
Given the investment horizon of 90 days AerSale Corp is expected to generate 1.14 times more return on investment than U Blox. However, AerSale Corp is 1.14 times more volatile than u blox Holding AG. It trades about 0.12 of its potential returns per unit of risk. u blox Holding AG is currently generating about -0.05 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 | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
AerSale Corp vs. u blox Holding AG
Performance |
| Timeline |
| AerSale Corp |
| u blox Holding |
AerSale Corp and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and U Blox
The main advantage of trading using opposite AerSale Corp and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox'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 |
| U Blox vs. Noble plc | U Blox vs. Highway Holdings Limited | U Blox vs. Cementos Pacasmayo SAA | U Blox vs. Park Ohio Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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