Correlation Between Saker Aviation and Talon International
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Talon International 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 Talon International 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 Talon International, you can compare the effects of market volatilities on Saker Aviation and Talon International 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 Talon International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Talon International.
Diversification Opportunities for Saker Aviation and Talon International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saker and Talon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Talon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talon International 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 Talon International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talon International has no effect on the direction of Saker Aviation i.e., Saker Aviation and Talon International go up and down completely randomly.
Pair Corralation between Saker Aviation and Talon International
If you would invest 725.00 in Saker Aviation Services on November 3, 2024 and sell it today you would earn a total of 55.00 from holding Saker Aviation Services or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Saker Aviation Services vs. Talon International
Performance |
| Timeline |
| Saker Aviation Services |
| Talon International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saker Aviation and Talon International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Talon International
The main advantage of trading using opposite Saker Aviation and Talon International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Talon International 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 Talon International will offset losses from the drop in Talon International's long position.| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
| Talon International vs. Table Trac | Talon International vs. Seychelle Environmtl | Talon International vs. Pacific Health Care | Talon International vs. Saker Aviation Services |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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