Correlation Between Sky Harbour and Sky Harbour

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

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

Diversification Opportunities for Sky Harbour and Sky Harbour

0.54

Correlation Coefficient

Sky Harbour  Sky Harbour

Very weak diversification

The 3 months correlation between Sky and Sky is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sky Harbour Group and Sky Harbour Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Harbour Group and Sky Harbour 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 Sky Harbour Group are associated (or correlated) with Sky Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Harbour Group has no effect on the direction of Sky Harbour i.e., Sky Harbour and Sky Harbour go up and down completely randomly.

Pair Corralation between Sky Harbour and Sky Harbour

Assuming the 90 days trading horizon Sky Harbour Group is expected to generate 2.18 times more return on investment than Sky Harbour. However, Sky Harbour is 2.18 times more volatile than Sky Harbour Group. It trades about 0.04 of its potential returns per unit of risk. Sky Harbour Group is currently generating about -0.01 per unit of risk. If you would invest  215.00  in Sky Harbour Group on September 2, 2024 and sell it today you would earn a total of  7.00  from holding Sky Harbour Group or generate 3.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Sky Harbour Group  vs.  Sky Harbour Group

Sky Harbour Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sky Harbour Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Sky Harbour unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sky Harbour Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sky Harbour Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sky Harbour is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sky Harbour and Sky Harbour

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

The idea behind Sky Harbour Group and Sky Harbour Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.