Correlation Between Global Crossing and Aston Bay
Can any of the company-specific risk be diversified away by investing in both Global Crossing and Aston Bay 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 Global Crossing and Aston Bay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and Aston Bay Holdings, you can compare the effects of market volatilities on Global Crossing and Aston Bay 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 Global Crossing with a short position of Aston Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and Aston Bay.
Diversification Opportunities for Global Crossing and Aston Bay
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Aston is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and Aston Bay Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Bay Holdings and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with Aston Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Bay Holdings has no effect on the direction of Global Crossing i.e., Global Crossing and Aston Bay go up and down completely randomly.
Pair Corralation between Global Crossing and Aston Bay
Assuming the 90 days horizon Global Crossing is expected to generate 2.94 times less return on investment than Aston Bay. But when comparing it to its historical volatility, Global Crossing Airlines is 2.15 times less risky than Aston Bay. It trades about 0.02 of its potential returns per unit of risk. Aston Bay Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.60 in Aston Bay Holdings on August 27, 2025 and sell it today you would lose (0.18) from holding Aston Bay Holdings or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Global Crossing Airlines vs. Aston Bay Holdings
Performance |
| Timeline |
| Global Crossing Airlines |
| Aston Bay Holdings |
Global Crossing and Aston Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and Aston Bay
The main advantage of trading using opposite Global Crossing and Aston Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, Aston Bay 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 Aston Bay will offset losses from the drop in Aston Bay's long position.| Global Crossing vs. Delta Air Lines | Global Crossing vs. Ryanair Holdings PLC | Global Crossing vs. Air China Limited | Global Crossing vs. Air China Ltd |
| Aston Bay vs. Dicks Sporting Goods | Aston Bay vs. Japan Airlines Ltd | Aston Bay vs. Global Crossing Airlines | Aston Bay vs. Knight Transportation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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