Correlation Between Air Transport and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Air Transport and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on Air Transport and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and Lenox Pasifik.
Diversification Opportunities for Air Transport and Lenox Pasifik
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Air and Lenox is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Air Transport i.e., Air Transport and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Air Transport and Lenox Pasifik
Assuming the 90 days horizon Air Transport Services is expected to generate 0.3 times more return on investment than Lenox Pasifik. However, Air Transport Services is 3.39 times less risky than Lenox Pasifik. It trades about 0.22 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about 0.06 per unit of risk. If you would invest 1,320 in Air Transport Services on September 12, 2024 and sell it today you would earn a total of 760.00 from holding Air Transport Services or generate 57.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Air Transport Services |
| Lenox Pasifik Investama |
Air Transport and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and Lenox Pasifik
The main advantage of trading using opposite Air Transport and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| Air Transport vs. Aena SME SA | Air Transport vs. Superior Plus Corp | Air Transport vs. SIVERS SEMICONDUCTORS AB | Air Transport vs. Norsk Hydro ASA |
| Lenox Pasifik vs. Siamgas And Petrochemicals | Lenox Pasifik vs. Ameriprise Financial | Lenox Pasifik vs. BANKINTER ADR 2007 | Lenox Pasifik vs. Southwest Airlines Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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