Correlation Between 06417XAK7 and Air Transport

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Can any of the company-specific risk be diversified away by investing in both 06417XAK7 and Air Transport 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 06417XAK7 and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNS 5406829 11 APR 25 and Air Transport Services, you can compare the effects of market volatilities on 06417XAK7 and Air Transport 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 06417XAK7 with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06417XAK7 and Air Transport.

Diversification Opportunities for 06417XAK7 and Air Transport

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between 06417XAK7 and Air is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BNS 5406829 11 APR 25 and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and 06417XAK7 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 BNS 5406829 11 APR 25 are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of 06417XAK7 i.e., 06417XAK7 and Air Transport go up and down completely randomly.

Pair Corralation between 06417XAK7 and Air Transport

Assuming the 90 days trading horizon BNS 5406829 11 APR 25 is expected to under-perform the Air Transport. But the bond apears to be less risky and, when comparing its historical volatility, BNS 5406829 11 APR 25 is 22.76 times less risky than Air Transport. The bond trades about -0.02 of its potential returns per unit of risk. The Air Transport Services is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,533  in Air Transport Services on September 13, 2024 and sell it today you would earn a total of  660.00  from holding Air Transport Services or generate 43.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy46.03%
ValuesDaily Returns

BNS 5406829 11 APR 25  vs.  Air Transport Services

 Performance 
       Timeline  
BNS 5406829 11 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BNS 5406829 11 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06417XAK7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Air Transport Services 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Air Transport Services are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Air Transport reported solid returns over the last few months and may actually be approaching a breakup point.

06417XAK7 and Air Transport Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 06417XAK7 and Air Transport

The main advantage of trading using opposite 06417XAK7 and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06417XAK7 position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.
The idea behind BNS 5406829 11 APR 25 and Air Transport Services 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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