Correlation Between Passur Aerospace and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Passur Aerospace and Saker Aviation 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 Passur Aerospace and Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passur Aerospace and Saker Aviation Services, you can compare the effects of market volatilities on Passur Aerospace and Saker Aviation 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 Passur Aerospace with a short position of Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passur Aerospace and Saker Aviation.
Diversification Opportunities for Passur Aerospace and Saker Aviation
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Passur and Saker is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Passur Aerospace and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Passur Aerospace 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 Passur Aerospace are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Passur Aerospace i.e., Passur Aerospace and Saker Aviation go up and down completely randomly.
Pair Corralation between Passur Aerospace and Saker Aviation
Given the investment horizon of 90 days Passur Aerospace is expected to generate 2.76 times more return on investment than Saker Aviation. However, Passur Aerospace is 2.76 times more volatile than Saker Aviation Services. It trades about 0.05 of its potential returns per unit of risk. Saker Aviation Services is currently generating about 0.05 per unit of risk. If you would invest 1.00 in Passur Aerospace on August 25, 2024 and sell it today you would earn a total of 0.50 from holding Passur Aerospace or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Passur Aerospace vs. Saker Aviation Services
Performance |
| Timeline |
| Passur Aerospace |
| Saker Aviation Services |
Passur Aerospace and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passur Aerospace and Saker Aviation
The main advantage of trading using opposite Passur Aerospace and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passur Aerospace position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Passur Aerospace vs. Element Solutions | Passur Aerospace vs. Orion Engineered Carbons | Passur Aerospace vs. Minerals Technologies | Passur Aerospace vs. Ingevity Corp |
| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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