Correlation Between AerSale Corp and PLAYSTUDIOS

Can any of the company-specific risk be diversified away by investing in both AerSale Corp and PLAYSTUDIOS 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 AerSale Corp and PLAYSTUDIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AerSale Corp and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on AerSale Corp and PLAYSTUDIOS 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 AerSale Corp with a short position of PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and PLAYSTUDIOS.

Diversification Opportunities for AerSale Corp and PLAYSTUDIOS

-0.91

Correlation Coefficient

AerSale Corp  PLAYSTUDIOS

Pay attention - limited upside

The 3 months correlation between AerSale and PLAYSTUDIOS is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and PLAYSTUDIOS A DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYSTUDIOS A DL and AerSale Corp 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 AerSale Corp are associated (or correlated) with PLAYSTUDIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYSTUDIOS A DL has no effect on the direction of AerSale Corp i.e., AerSale Corp and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between AerSale Corp and PLAYSTUDIOS

Given the investment horizon of 90 days AerSale Corp is expected to generate 0.76 times more return on investment than PLAYSTUDIOS. However, AerSale Corp is 1.32 times less risky than PLAYSTUDIOS. It trades about 0.21 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.2 per unit of risk. If you would invest  619.00  in AerSale Corp on December 26, 2024 and sell it today you would earn a total of  226.00  from holding AerSale Corp or generate 36.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

AerSale Corp  vs.  PLAYSTUDIOS A DL 0001

AerSale Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AerSale Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, AerSale Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

PLAYSTUDIOS A DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYSTUDIOS A DL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with AerSale Corp and PLAYSTUDIOS

The main advantage of trading using opposite AerSale Corp and PLAYSTUDIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, PLAYSTUDIOS 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 PLAYSTUDIOS will offset losses from the drop in PLAYSTUDIOS's long position.

The idea behind AerSale Corp and PLAYSTUDIOS A DL 0001 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.