Correlation Between AerSale Corp and UNION
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By analyzing existing cross correlation between AerSale Corp and UNION ELEC 4, you can compare the effects of market volatilities on AerSale Corp and UNION 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 UNION. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and UNION.
Diversification Opportunities for AerSale Corp and UNION
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between AerSale and UNION is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and UNION ELEC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION ELEC 4 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 UNION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION ELEC 4 has no effect on the direction of AerSale Corp i.e., AerSale Corp and UNION go up and down completely randomly.
Pair Corralation between AerSale Corp and UNION
Given the investment horizon of 90 days AerSale Corp is expected to generate 2.5 times more return on investment than UNION. However, AerSale Corp is 2.5 times more volatile than UNION ELEC 4. It trades about 0.24 of its potential returns per unit of risk. UNION ELEC 4 is currently generating about 0.08 per unit of risk. If you would invest 542.00 in AerSale Corp on September 5, 2024 and sell it today you would earn a total of 87.00 from holding AerSale Corp or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
AerSale Corp vs. UNION ELEC 4
Performance |
| Timeline |
| AerSale Corp |
| UNION ELEC 4 |
AerSale Corp and UNION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and UNION
The main advantage of trading using opposite AerSale Corp and UNION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, UNION 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 UNION will offset losses from the drop in UNION'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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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