Correlation Between EHi Car and Aircastle
Can any of the company-specific risk be diversified away by investing in both EHi Car and Aircastle 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 EHi Car and Aircastle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHi Car Services and Aircastle Limited, you can compare the effects of market volatilities on EHi Car and Aircastle 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 EHi Car with a short position of Aircastle. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHi Car and Aircastle.
Diversification Opportunities for EHi Car and Aircastle
Pay attention - limited upside
The 3 months correlation between EHi and Aircastle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EHi Car Services and Aircastle Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aircastle Limited and EHi Car 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 EHi Car Services are associated (or correlated) with Aircastle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aircastle Limited has no effect on the direction of EHi Car i.e., EHi Car and Aircastle go up and down completely randomly.
Pair Corralation between EHi Car and Aircastle
If you would invest (100.00) in Aircastle Limited on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Aircastle Limited or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
EHi Car Services vs. Aircastle Limited
Performance |
Timeline |
EHi Car Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aircastle Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EHi Car and Aircastle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EHi Car and Aircastle
The main advantage of trading using opposite EHi Car and Aircastle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHi Car position performs unexpectedly, Aircastle 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 Aircastle will offset losses from the drop in Aircastle's long position.EHi Car vs. Jacobs Solutions | EHi Car vs. Papaya Growth Opportunity | EHi Car vs. Sphere Entertainment Co | EHi Car vs. Electrovaya Common Shares |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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