Correlation Between AerSale Corp and 46817MAN7

Can any of the company-specific risk be diversified away by investing in both AerSale Corp and 46817MAN7 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 AerSale Corp and 46817MAN7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AerSale Corp and JXN 4 23 NOV 51, you can compare the effects of market volatilities on AerSale Corp and 46817MAN7 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 AerSale Corp with a short position of 46817MAN7. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and 46817MAN7.

Diversification Opportunities for AerSale Corp and 46817MAN7

-0.11

Correlation Coefficient

AerSale Corp  46817MAN7

Good diversification

The 3 months correlation between AerSale and 46817MAN7 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and JXN 4 23 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 46817MAN7 and AerSale 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 AerSale Corp are associated (or correlated) with 46817MAN7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 46817MAN7 has no effect on the direction of AerSale Corp i.e., AerSale Corp and 46817MAN7 go up and down completely randomly.

Pair Corralation between AerSale Corp and 46817MAN7

Given the investment horizon of 90 days AerSale Corp is expected to under-perform the 46817MAN7. In addition to that, AerSale Corp is 1.11 times more volatile than JXN 4 23 NOV 51. It trades about -0.08 of its total potential returns per unit of risk. JXN 4 23 NOV 51 is currently generating about 0.02 per unit of volatility. If you would invest  6,532  in JXN 4 23 NOV 51 on May 7, 2025 and sell it today you would earn a total of  87.00  from holding JXN 4 23 NOV 51 or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

AerSale Corp  vs.  JXN 4 23 NOV 51

AerSale Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days AerSale Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

46817MAN7

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JXN 4 23 NOV 51 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 46817MAN7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AerSale Corp and 46817MAN7

The main advantage of trading using opposite AerSale Corp and 46817MAN7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, 46817MAN7 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 46817MAN7 will offset losses from the drop in 46817MAN7's long position.

The idea behind AerSale Corp and JXN 4 23 NOV 51 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.