Correlation Between Air Lease and AeroCentury Corp
Can any of the company-specific risk be diversified away by investing in both Air Lease and AeroCentury 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 Air Lease and AeroCentury Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and AeroCentury Corp, you can compare the effects of market volatilities on Air Lease and AeroCentury 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 Air Lease with a short position of AeroCentury Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and AeroCentury Corp.
Diversification Opportunities for Air Lease and AeroCentury Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and AeroCentury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and AeroCentury Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AeroCentury Corp and Air Lease 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 Air Lease are associated (or correlated) with AeroCentury Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AeroCentury Corp has no effect on the direction of Air Lease i.e., Air Lease and AeroCentury Corp go up and down completely randomly.
Pair Corralation between Air Lease and AeroCentury Corp
If you would invest 3,954 in Air Lease on January 24, 2024 and sell it today you would earn a total of 1,001 from holding Air Lease or generate 25.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Air Lease vs. AeroCentury Corp
Performance |
Timeline |
Air Lease |
AeroCentury Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease and AeroCentury Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Lease and AeroCentury Corp
The main advantage of trading using opposite Air Lease and AeroCentury Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, AeroCentury 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 AeroCentury Corp will offset losses from the drop in AeroCentury Corp's long position.Air Lease vs. The Aarons | Air Lease vs. McGrath RentCorp | Air Lease vs. PROG Holdings | Air Lease vs. Ryder System |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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