Correlation Between Air Lease and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Air Lease and IShares Physical 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 IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and iShares Physical Metals, you can compare the effects of market volatilities on Air Lease and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and IShares Physical.
Diversification Opportunities for Air Lease and IShares Physical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Air and IShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and iShares Physical Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Metals 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Metals has no effect on the direction of Air Lease i.e., Air Lease and IShares Physical go up and down completely randomly.
Pair Corralation between Air Lease and IShares Physical
Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.68 times more return on investment than IShares Physical. However, Air Lease is 1.68 times more volatile than iShares Physical Metals. It trades about 0.2 of its potential returns per unit of risk. iShares Physical Metals is currently generating about 0.24 per unit of risk. If you would invest 4,223 in Air Lease on January 25, 2024 and sell it today you would earn a total of 878.00 from holding Air Lease or generate 20.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.41% |
Values | Daily Returns |
Air Lease vs. iShares Physical Metals
Performance |
Timeline |
Air Lease |
iShares Physical Metals |
Air Lease and IShares Physical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Lease and IShares Physical
The main advantage of trading using opposite Air Lease and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.Air Lease vs. The Aarons | Air Lease vs. McGrath RentCorp | Air Lease vs. PROG Holdings | Air Lease vs. Ryder System |
IShares Physical vs. Lilium Equity Warrants | IShares Physical vs. Blade Air Mobility | IShares Physical vs. HUMANA INC | IShares Physical vs. Aquagold International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |