Correlation Between Saker Aviation and Auckland International
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Auckland International 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 Saker Aviation and Auckland International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Auckland International Airport, you can compare the effects of market volatilities on Saker Aviation and Auckland International 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 Saker Aviation with a short position of Auckland International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Auckland International.
Diversification Opportunities for Saker Aviation and Auckland International
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saker and Auckland is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Auckland International Airport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auckland International and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Auckland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auckland International has no effect on the direction of Saker Aviation i.e., Saker Aviation and Auckland International go up and down completely randomly.
Pair Corralation between Saker Aviation and Auckland International
If you would invest 837.00 in Saker Aviation Services on January 27, 2024 and sell it today you would earn a total of 26.00 from holding Saker Aviation Services or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saker Aviation Services vs. Auckland International Airport
Performance |
| Timeline |
| Saker Aviation Services |
| Auckland International |
Saker Aviation and Auckland International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Auckland International
The main advantage of trading using opposite Saker Aviation and Auckland International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Auckland International 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 Auckland International will offset losses from the drop in Auckland International's long position.| Saker Aviation vs. Vertical Aerospace | Saker Aviation vs. Rolls Royce Holdings plc | Saker Aviation vs. Embraer SA ADR | Saker Aviation vs. Rocket Lab USA |
| Auckland International vs. Aeroports de Paris | Auckland International vs. Corporacion America Airports | Auckland International vs. Saker Aviation Services | Auckland International vs. AerSale Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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