Correlation Between SOCGEN and Air Transport
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By analyzing existing cross correlation between SOCGEN 425 14 APR 25 and Air Transport Services, you can compare the effects of market volatilities on SOCGEN and Air Transport 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 SOCGEN with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCGEN and Air Transport.
Diversification Opportunities for SOCGEN and Air Transport
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOCGEN and Air is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SOCGEN 425 14 APR 25 and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and SOCGEN 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 SOCGEN 425 14 APR 25 are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of SOCGEN i.e., SOCGEN and Air Transport go up and down completely randomly.
Pair Corralation between SOCGEN and Air Transport
Assuming the 90 days trading horizon SOCGEN 425 14 APR 25 is expected to under-perform the Air Transport. But the bond apears to be less risky and, when comparing its historical volatility, SOCGEN 425 14 APR 25 is 8.03 times less risky than Air Transport. The bond trades about -0.01 of its potential returns per unit of risk. The Air Transport Services is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,768 in Air Transport Services on September 3, 2024 and sell it today you would lose (572.00) from holding Air Transport Services or give up 20.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.58% |
| Values | Daily Returns |
SOCGEN 425 14 APR 25 vs. Air Transport Services
Performance |
| Timeline |
| SOCGEN 425 14 |
| Air Transport Services |
SOCGEN and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOCGEN and Air Transport
The main advantage of trading using opposite SOCGEN and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCGEN position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| SOCGEN vs. Air Transport Services | SOCGEN vs. Topbuild Corp | SOCGEN vs. Newpark Resources | SOCGEN vs. Nok Airlines Public |
| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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