Correlation Between Shandong Molong and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Shandong Molong 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 Shandong Molong and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shandong Molong Petroleum and AerCap Holdings NV, you can compare the effects of market volatilities on Shandong Molong 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 Shandong Molong with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Molong and AerCap Holdings.
Diversification Opportunities for Shandong Molong and AerCap Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shandong and AerCap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Molong Petroleum 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 Shandong Molong 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 Shandong Molong Petroleum 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 Shandong Molong i.e., Shandong Molong and AerCap Holdings go up and down completely randomly.
Pair Corralation between Shandong Molong and AerCap Holdings
If you would invest 9,584 in AerCap Holdings NV on August 28, 2024 and sell it today you would earn a total of 385.00 from holding AerCap Holdings NV or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Shandong Molong Petroleum vs. AerCap Holdings NV
Performance |
| Timeline |
| Shandong Molong Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AerCap Holdings NV |
Shandong Molong and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Molong and AerCap Holdings
The main advantage of trading using opposite Shandong Molong and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Molong 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.| Shandong Molong vs. Lipocine | Shandong Molong vs. World Houseware Limited | Shandong Molong vs. Spyre Therapeutics | Shandong Molong vs. Ardelyx |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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