Correlation Between Saker Aviation and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Saker Aviation 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 Saker Aviation and AerCap Holdings 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 AerCap Holdings NV, you can compare the effects of market volatilities on Saker Aviation 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 Saker Aviation with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and AerCap Holdings.
Diversification Opportunities for Saker Aviation and AerCap Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saker and AerCap is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services 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 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 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 Saker Aviation i.e., Saker Aviation and AerCap Holdings go up and down completely randomly.
Pair Corralation between Saker Aviation and AerCap Holdings
Given the investment horizon of 90 days Saker Aviation Services is expected to generate 1.9 times more return on investment than AerCap Holdings. However, Saker Aviation is 1.9 times more volatile than AerCap Holdings NV. It trades about 0.02 of its potential returns per unit of risk. AerCap Holdings NV is currently generating about -0.14 per unit of risk. If you would invest 846.00 in Saker Aviation Services on January 21, 2024 and sell it today you would earn a total of 5.00 from holding Saker Aviation Services or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saker Aviation Services vs. AerCap Holdings NV
Performance |
| Timeline |
| Saker Aviation Services |
| AerCap Holdings NV |
Saker Aviation and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and AerCap Holdings
The main advantage of trading using opposite Saker Aviation and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation 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.| Saker Aviation vs. V2X Inc | Saker Aviation vs. National Presto Industries | Saker Aviation vs. Kaman | Saker Aviation vs. Woodward |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Avis Budget Group | AerCap Holdings vs. FlexShopper | AerCap Holdings vs. Global Ship Lease |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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