Correlation Between Saker Aviation and Signature Aviation
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Signature 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 Saker Aviation and Signature Aviation 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 Signature Aviation Plc, you can compare the effects of market volatilities on Saker Aviation and Signature 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 Saker Aviation with a short position of Signature Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Signature Aviation.
Diversification Opportunities for Saker Aviation and Signature Aviation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saker and Signature is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Signature Aviation Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Aviation Plc 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 Signature Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Aviation Plc has no effect on the direction of Saker Aviation i.e., Saker Aviation and Signature Aviation go up and down completely randomly.
Pair Corralation between Saker Aviation and Signature Aviation
If you would invest 835.00 in Saker Aviation Services on January 25, 2024 and sell it today you would earn a total of 28.00 from holding Saker Aviation Services or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Saker Aviation Services vs. Signature Aviation Plc
Performance |
| Timeline |
| Saker Aviation Services |
| Signature Aviation Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saker Aviation and Signature Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Signature Aviation
The main advantage of trading using opposite Saker Aviation and Signature Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Signature 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 Signature Aviation will offset losses from the drop in Signature Aviation'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 |
| Signature Aviation vs. East Africa Metals | Signature Aviation vs. Yuexiu Transport Infrastructure | Signature Aviation vs. CDW Corp | Signature Aviation vs. Fast Retailing Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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