Correlation Between Table Trac and Saker Aviation

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

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

Diversification Opportunities for Table Trac and Saker Aviation

0.39

Correlation Coefficient

Table Trac  Saker Aviation

Weak diversification

The 3 months correlation between Table and Saker is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Table Trac and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Table Trac 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 Table Trac are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Table Trac i.e., Table Trac and Saker Aviation go up and down completely randomly.

Pair Corralation between Table Trac and Saker Aviation

Given the investment horizon of 90 days Table Trac is expected to under-perform the Saker Aviation. But the otc stock apears to be less risky and, when comparing its historical volatility, Table Trac is 1.1 times less risky than Saker Aviation. The otc stock trades about 0.0 of its potential returns per unit of risk. The Saker Aviation Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  540.00  in Saker Aviation Services on October 26, 2024 and sell it today you would earn a total of  275.00  from holding Saker Aviation Services or generate 50.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.52%
Values	Daily Returns

Table Trac  vs.  Saker Aviation Services

Table Trac

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Table Trac are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Table Trac may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Saker Aviation Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saker Aviation Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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 Table Trac and Saker Aviation

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

The idea behind Table Trac and Saker Aviation Services 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.