Correlation Between AerSale Corp and Mega Matrix

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

By analyzing existing cross correlation between AerSale Corp and Mega Matrix Corp, you can compare the effects of market volatilities on AerSale Corp and Mega Matrix 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 Mega Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Mega Matrix.

Diversification Opportunities for AerSale Corp and Mega Matrix

0.07

Correlation Coefficient

AerSale Corp  Mega Matrix

Significant diversification

The 3 months correlation between AerSale and Mega is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Mega Matrix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Matrix Corp 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 Mega Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Matrix Corp has no effect on the direction of AerSale Corp i.e., AerSale Corp and Mega Matrix go up and down completely randomly.

Pair Corralation between AerSale Corp and Mega Matrix

Given the investment horizon of 90 days AerSale Corp is expected to generate 0.24 times more return on investment than Mega Matrix. However, AerSale Corp is 4.21 times less risky than Mega Matrix. It trades about 0.41 of its potential returns per unit of risk. Mega Matrix Corp is currently generating about -0.13 per unit of risk. If you would invest  619.00  in AerSale Corp on October 26, 2024 and sell it today you would earn a total of  69.00  from holding AerSale Corp or generate 11.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AerSale Corp  vs.  Mega Matrix Corp

AerSale Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AerSale Corp are ranked lower than 13 (%) 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.

Mega Matrix Corp

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Mega Matrix Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AerSale Corp and Mega Matrix

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

The idea behind AerSale Corp and Mega Matrix Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.