Correlation Between Mayfair Gold and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and AerCap Holdings 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 Mayfair Gold and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and AerCap Holdings NV, you can compare the effects of market volatilities on Mayfair Gold and AerCap Holdings 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 Mayfair Gold with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and AerCap Holdings.
Diversification Opportunities for Mayfair Gold and AerCap Holdings
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mayfair and AerCap is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV and Mayfair Gold 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 Mayfair Gold Corp are associated (or correlated) with AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and AerCap Holdings go up and down completely randomly.
Pair Corralation between Mayfair Gold and AerCap Holdings
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the AerCap Holdings. In addition to that, Mayfair Gold is 1.64 times more volatile than AerCap Holdings NV. It trades about -0.4 of its total potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.23 per unit of volatility. If you would invest 9,330 in AerCap Holdings NV on September 1, 2024 and sell it today you would earn a total of 606.00 from holding AerCap Holdings NV or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. AerCap Holdings NV
Performance |
| Timeline |
| Mayfair Gold Corp |
| AerCap Holdings NV |
Mayfair Gold and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and AerCap Holdings
The main advantage of trading using opposite Mayfair Gold and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, AerCap Holdings 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 AerCap Holdings will offset losses from the drop in AerCap Holdings' long position.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |