Correlation Between Duluth Holdings and AerSale Corp
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and AerSale Corp 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 Duluth Holdings and AerSale Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and AerSale Corp, you can compare the effects of market volatilities on Duluth Holdings and AerSale Corp 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 Duluth Holdings with a short position of AerSale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and AerSale Corp.
Diversification Opportunities for Duluth Holdings and AerSale Corp
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duluth and AerSale is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and AerSale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerSale Corp and Duluth Holdings 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 Duluth Holdings are associated (or correlated) with AerSale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerSale Corp has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and AerSale Corp go up and down completely randomly.
Pair Corralation between Duluth Holdings and AerSale Corp
Given the investment horizon of 90 days Duluth Holdings is expected to generate 0.87 times more return on investment than AerSale Corp. However, Duluth Holdings is 1.15 times less risky than AerSale Corp. It trades about -0.02 of its potential returns per unit of risk. AerSale Corp is currently generating about -0.04 per unit of risk. If you would invest 617.00 in Duluth Holdings on September 4, 2024 and sell it today you would lose (228.00) from holding Duluth Holdings or give up 36.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. AerSale Corp
Performance |
| Timeline |
| Duluth Holdings |
| AerSale Corp |
Duluth Holdings and AerSale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and AerSale Corp
The main advantage of trading using opposite Duluth Holdings and AerSale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, AerSale Corp 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 AerSale Corp will offset losses from the drop in AerSale Corp's long position.| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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