Correlation Between Air Transport and H-FARM SPA
Can any of the company-specific risk be diversified away by investing in both Air Transport and H-FARM SPA 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 Air Transport and H-FARM SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and H FARM SPA, you can compare the effects of market volatilities on Air Transport and H-FARM SPA 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 Air Transport with a short position of H-FARM SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and H-FARM SPA.
Diversification Opportunities for Air Transport and H-FARM SPA
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and H-FARM is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA and Air Transport 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 Air Transport Services are associated (or correlated) with H-FARM SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of Air Transport i.e., Air Transport and H-FARM SPA go up and down completely randomly.
Pair Corralation between Air Transport and H-FARM SPA
Assuming the 90 days horizon Air Transport Services is expected to generate 0.08 times more return on investment than H-FARM SPA. However, Air Transport Services is 12.83 times less risky than H-FARM SPA. It trades about 0.07 of its potential returns per unit of risk. H FARM SPA is currently generating about -0.08 per unit of risk. If you would invest 2,120 in Air Transport Services on November 6, 2024 and sell it today you would earn a total of 20.00 from holding Air Transport Services or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. H FARM SPA
Performance |
| Timeline |
| Air Transport Services |
| H FARM SPA |
Air Transport and H-FARM SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and H-FARM SPA
The main advantage of trading using opposite Air Transport and H-FARM SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport position performs unexpectedly, H-FARM SPA 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 H-FARM SPA will offset losses from the drop in H-FARM SPA's long position.| Air Transport vs. Planet Fitness | Air Transport vs. CHINA EDUCATION GROUP | Air Transport vs. Cardinal Health | Air Transport vs. Siemens Healthineers AG |
| H-FARM SPA vs. American Homes 4 | H-FARM SPA vs. The Home Depot | H-FARM SPA vs. PLAYTIKA HOLDING DL 01 | H-FARM SPA vs. CENTURIA OFFICE REIT |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |