Correlation Between MF International and AerSale Corp

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Can any of the company-specific risk be diversified away by investing in both MF International and AerSale Corp 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 MF International and AerSale Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mF International Limited and AerSale Corp, you can compare the effects of market volatilities on MF International and AerSale Corp 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 MF International with a short position of AerSale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MF International and AerSale Corp.

Diversification Opportunities for MF International and AerSale Corp

MFIAerSaleDiversified AwayMFIAerSaleDiversified Away100%
-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between MFI and AerSale is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding mF International Limited and AerSale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerSale Corp and MF International 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 mF International Limited are associated (or correlated) with AerSale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerSale Corp has no effect on the direction of MF International i.e., MF International and AerSale Corp go up and down completely randomly.

Pair Corralation between MF International and AerSale Corp

Considering the 90-day investment horizon mF International Limited is expected to under-perform the AerSale Corp. In addition to that, MF International is 9.28 times more volatile than AerSale Corp. It trades about -0.08 of its total potential returns per unit of risk. AerSale Corp is currently generating about 0.1 per unit of volatility. If you would invest  683.00  in AerSale Corp on November 29, 2024 and sell it today you would earn a total of  17.00  from holding AerSale Corp or generate 2.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

mF International Limited  vs.  AerSale Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0204060
JavaScript chart by amCharts 3.21.15MFI ASLE
       Timeline  
mF International 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in mF International Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, MF International demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.60.811.21.41.6
AerSale Corp 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AerSale Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, AerSale Corp may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb66.26.46.66.877.2

MF International and AerSale Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-37.19-27.85-18.52-9.180.169.4819.1328.7738.42 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15MFI ASLE
       Returns  

Pair Trading with MF International and AerSale Corp

The main advantage of trading using opposite MF International and AerSale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MF International position performs unexpectedly, AerSale Corp 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 AerSale Corp will offset losses from the drop in AerSale Corp's long position.
The idea behind mF International Limited and AerSale 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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