Correlation Between AerSale Corp and Figs
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and Figs 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 Figs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Figs Inc, you can compare the effects of market volatilities on AerSale Corp and Figs 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 Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Figs.
Diversification Opportunities for AerSale Corp and Figs
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AerSale and Figs is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc 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 Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of AerSale Corp i.e., AerSale Corp and Figs go up and down completely randomly.
Pair Corralation between AerSale Corp and Figs
Given the investment horizon of 90 days AerSale Corp is expected to generate 0.72 times more return on investment than Figs. However, AerSale Corp is 1.39 times less risky than Figs. It trades about 0.21 of its potential returns per unit of risk. Figs Inc is currently generating about -0.1 per unit of risk. If you would invest 615.00 in AerSale Corp on December 28, 2024 and sell it today you would earn a total of 225.00 from holding AerSale Corp or generate 36.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AerSale Corp vs. Figs Inc
Performance |
Timeline |
AerSale Corp |
Figs Inc |
AerSale Corp and Figs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AerSale Corp and Figs
The main advantage of trading using opposite AerSale Corp and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Corporacion America Airports | AerSale Corp vs. Aeroports de Paris |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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