Correlation Between Mega Matrix and AerCap Holdings

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

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

Diversification Opportunities for Mega Matrix and AerCap Holdings

0.38

Correlation Coefficient

Mega Matrix  AerCap Holdings

Weak diversification

The 3 months correlation between Mega and AerCap is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mega Matrix Corp and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV and Mega Matrix 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 Mega Matrix Corp are associated (or correlated) with AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of Mega Matrix i.e., Mega Matrix and AerCap Holdings go up and down completely randomly.

Pair Corralation between Mega Matrix and AerCap Holdings

Considering the 90-day investment horizon Mega Matrix Corp is expected to generate 3.99 times more return on investment than AerCap Holdings. However, Mega Matrix is 3.99 times more volatile than AerCap Holdings NV. It trades about 0.03 of its potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.07 per unit of risk. If you would invest  177.00  in Mega Matrix Corp on September 23, 2024 and sell it today you would lose (2.00) from holding Mega Matrix Corp or give up 1.13% of portfolio value over 90 days.

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

Mega Matrix Corp  vs.  AerCap Holdings NV

Mega Matrix Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mega Matrix Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Mega Matrix unveiled solid returns over the last few months and may actually be approaching a breakup point.

AerCap Holdings NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AerCap Holdings NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, AerCap Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mega Matrix and AerCap Holdings

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

The idea behind Mega Matrix Corp and AerCap Holdings NV 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.