Correlation Between Superior Plus and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and AerCap Holdings NV, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AerCap Holdings.
Diversification Opportunities for Superior Plus and AerCap Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and AerCap is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and AerCap Holdings go up and down completely randomly.
Pair Corralation between Superior Plus and AerCap Holdings
Assuming the 90 days horizon Superior Plus is expected to generate 1.74 times less return on investment than AerCap Holdings. In addition to that, Superior Plus is 1.38 times more volatile than AerCap Holdings NV. It trades about 0.03 of its total potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.06 per unit of volatility. If you would invest 9,033 in AerCap Holdings NV on December 29, 2024 and sell it today you would earn a total of 453.00 from holding AerCap Holdings NV or generate 5.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Superior Plus Corp vs. AerCap Holdings NV
Performance |
Timeline |
Superior Plus Corp |
AerCap Holdings NV |
Superior Plus and AerCap Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Superior Plus and AerCap Holdings
The main advantage of trading using opposite Superior Plus and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.Superior Plus vs. Jacquet Metal Service | Superior Plus vs. MCEWEN MINING INC | Superior Plus vs. Western Copper and | Superior Plus vs. GREENX METALS LTD |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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