Correlation Between AAR Corp and Clear Media
Can any of the company-specific risk be diversified away by investing in both AAR Corp and Clear Media 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 AAR Corp and Clear Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAR Corp and Clear Media Limited, you can compare the effects of market volatilities on AAR Corp and Clear Media 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 AAR Corp with a short position of Clear Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAR Corp and Clear Media.
Diversification Opportunities for AAR Corp and Clear Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AAR and Clear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AAR Corp and Clear Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Media Limited and AAR Corp 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 AAR Corp are associated (or correlated) with Clear Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Media Limited has no effect on the direction of AAR Corp i.e., AAR Corp and Clear Media go up and down completely randomly.
Pair Corralation between AAR Corp and Clear Media
If you would invest 5,375 in AAR Corp on January 27, 2024 and sell it today you would earn a total of 1,367 from holding AAR Corp or generate 25.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
AAR Corp vs. Clear Media Limited
Performance |
| Timeline |
| AAR Corp |
| Clear Media Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AAR Corp and Clear Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAR Corp and Clear Media
The main advantage of trading using opposite AAR Corp and Clear Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAR Corp position performs unexpectedly, Clear Media 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 Clear Media will offset losses from the drop in Clear Media's long position.The idea behind AAR Corp and Clear Media Limited 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.| Clear Media vs. Duckhorn Portfolio | Clear Media vs. Kite Realty Group | Clear Media vs. Stepstone Group | Clear Media vs. Diageo PLC ADR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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