Correlation Between Saker Aviation and Aeroports
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Aeroports 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 Saker Aviation and Aeroports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Aeroports de Paris, you can compare the effects of market volatilities on Saker Aviation and Aeroports 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 Saker Aviation with a short position of Aeroports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Aeroports.
Diversification Opportunities for Saker Aviation and Aeroports
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saker and Aeroports is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Aeroports de Paris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeroports de Paris and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Aeroports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeroports de Paris has no effect on the direction of Saker Aviation i.e., Saker Aviation and Aeroports go up and down completely randomly.
Pair Corralation between Saker Aviation and Aeroports
Given the investment horizon of 90 days Saker Aviation Services is expected to generate 1.01 times more return on investment than Aeroports. However, Saker Aviation is 1.01 times more volatile than Aeroports de Paris. It trades about 0.04 of its potential returns per unit of risk. Aeroports de Paris is currently generating about 0.0 per unit of risk. If you would invest 525.00 in Saker Aviation Services on August 25, 2024 and sell it today you would earn a total of 235.00 from holding Saker Aviation Services or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.79% |
| Values | Daily Returns |
Saker Aviation Services vs. Aeroports de Paris
Performance |
| Timeline |
| Saker Aviation Services |
| Aeroports de Paris |
Saker Aviation and Aeroports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Aeroports
The main advantage of trading using opposite Saker Aviation and Aeroports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Aeroports 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 Aeroports will offset losses from the drop in Aeroports' long position.| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
| Aeroports vs. Aeroports de Paris | Aeroports vs. Aena SME SA | Aeroports vs. Auckland International Airport | Aeroports vs. Auckland International Airport |
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 Stocks Directory module to find actively traded stocks across global markets.
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