Correlation Between Distoken Acquisition and AerSale Corp

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

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

Diversification Opportunities for Distoken Acquisition and AerSale Corp

-0.2

Correlation Coefficient

Distoken Acquisition  AerSale Corp

Good diversification

The 3 months correlation between Distoken and AerSale is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and AerSale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerSale Corp and Distoken Acquisition 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 Distoken Acquisition are associated (or correlated) with AerSale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerSale Corp has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and AerSale Corp go up and down completely randomly.

Pair Corralation between Distoken Acquisition and AerSale Corp

Given the investment horizon of 90 days Distoken Acquisition is expected to generate 5.06 times more return on investment than AerSale Corp. However, Distoken Acquisition is 5.06 times more volatile than AerSale Corp. It trades about 0.2 of its potential returns per unit of risk. AerSale Corp is currently generating about -0.11 per unit of risk. If you would invest  1,201  in Distoken Acquisition on May 6, 2025 and sell it today you would earn a total of  1,599  from holding Distoken Acquisition or generate 133.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.58%
Values	Daily Returns

Distoken Acquisition  vs.  AerSale Corp

Distoken Acquisition

Risk-Adjusted Performance

Solid

Over the last 90 days Distoken Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively abnormal basic indicators, Distoken Acquisition unveiled solid returns over the last few months and may actually be approaching a breakup point.

AerSale Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days AerSale Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Distoken Acquisition and AerSale Corp

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

The idea behind Distoken Acquisition and AerSale Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.