Correlation Between Air Transport and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both Air Transport and MAG SILVER 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 MAG SILVER 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 MAG SILVER, you can compare the effects of market volatilities on Air Transport and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and MAG SILVER.
Diversification Opportunities for Air Transport and MAG SILVER
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and MAG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of Air Transport i.e., Air Transport and MAG SILVER go up and down completely randomly.
Pair Corralation between Air Transport and MAG SILVER
Assuming the 90 days horizon Air Transport Services is expected to generate 0.23 times more return on investment than MAG SILVER. However, Air Transport Services is 4.43 times less risky than MAG SILVER. It trades about 0.24 of its potential returns per unit of risk. MAG SILVER is currently generating about -0.18 per unit of risk. If you would invest 2,080 in Air Transport Services on October 12, 2024 and sell it today you would earn a total of 40.00 from holding Air Transport Services or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Air Transport Services vs. MAG SILVER
Performance |
| Timeline |
| Air Transport Services |
| MAG SILVER |
Air Transport and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and MAG SILVER
The main advantage of trading using opposite Air Transport and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| Air Transport vs. Superior Plus Corp | Air Transport vs. NMI Holdings | Air Transport vs. SIVERS SEMICONDUCTORS AB | Air Transport vs. Talanx AG |
| MAG SILVER vs. EVS Broadcast Equipment | MAG SILVER vs. GLOBUS MEDICAL A | MAG SILVER vs. Air Transport Services | MAG SILVER vs. NAGOYA RAILROAD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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