Correlation Between Insignia Systems and Air Lease
Can any of the company-specific risk be diversified away by investing in both Insignia Systems and Air Lease 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 Insignia Systems and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insignia Systems and Air Lease, you can compare the effects of market volatilities on Insignia Systems and Air Lease 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 Insignia Systems with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insignia Systems and Air Lease.
Diversification Opportunities for Insignia Systems and Air Lease
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Insignia and Air is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Insignia Systems and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Insignia Systems 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 Insignia Systems are associated (or correlated) with Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Insignia Systems i.e., Insignia Systems and Air Lease go up and down completely randomly.
Pair Corralation between Insignia Systems and Air Lease
If you would invest 5,031 in Air Lease on January 26, 2024 and sell it today you would earn a total of 109.00 from holding Air Lease or generate 2.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
Insignia Systems vs. Air Lease
Performance |
Timeline |
Insignia Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease |
Insignia Systems and Air Lease Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Insignia Systems and Air Lease
The main advantage of trading using opposite Insignia Systems and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insignia Systems position performs unexpectedly, Air Lease 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 Lease will offset losses from the drop in Air Lease's long position.Insignia Systems vs. Steel Connect | Insignia Systems vs. Baosheng Media Group | Insignia Systems vs. Impact Fusion International | Insignia Systems vs. Clubhouse Media Group |
Air Lease vs. Ryder System | Air Lease vs. The Aarons | Air Lease vs. Alta Equipment Group | Air Lease vs. GATX Corporation |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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