Correlation Between FlyExclusive, and Aterian

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

By analyzing existing cross correlation between flyExclusive, and Aterian, you can compare the effects of market volatilities on FlyExclusive, and Aterian 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 FlyExclusive, with a short position of Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlyExclusive, and Aterian.

Diversification Opportunities for FlyExclusive, and Aterian

-0.22

Correlation Coefficient

FlyExclusive,  Aterian

Very good diversification

The 3 months correlation between FlyExclusive, and Aterian is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian and FlyExclusive, 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 flyExclusive, are associated (or correlated) with Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and Aterian go up and down completely randomly.

Pair Corralation between FlyExclusive, and Aterian

Given the investment horizon of 90 days flyExclusive, is expected to generate 0.82 times more return on investment than Aterian. However, flyExclusive, is 1.21 times less risky than Aterian. It trades about 0.14 of its potential returns per unit of risk. Aterian is currently generating about 0.02 per unit of risk. If you would invest  245.00  in flyExclusive, on December 22, 2024 and sell it today you would earn a total of  105.00  from holding flyExclusive, or generate 42.86% return on investment over 90 days.

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

flyExclusive,  vs.  Aterian

flyExclusive,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, FlyExclusive, showed solid returns over the last few months and may actually be approaching a breakup point.

Aterian

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aterian are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Aterian may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FlyExclusive, and Aterian

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

The idea behind flyExclusive, and Aterian 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.