Correlation Between Fly Leasing and Air Lease
Can any of the company-specific risk be diversified away by investing in both Fly Leasing 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 Fly Leasing and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fly Leasing Limited and Air Lease, you can compare the effects of market volatilities on Fly Leasing 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 Fly Leasing with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fly Leasing and Air Lease.
Diversification Opportunities for Fly Leasing and Air Lease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fly and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fly Leasing Limited and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Fly Leasing 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 Fly Leasing Limited 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 Fly Leasing i.e., Fly Leasing and Air Lease go up and down completely randomly.
Pair Corralation between Fly Leasing and Air Lease
If you would invest 3,614 in Air Lease on January 20, 2024 and sell it today you would earn a total of 1,259 from holding Air Lease or generate 34.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Fly Leasing Limited vs. Air Lease
Performance |
Timeline |
Fly Leasing Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease |
Fly Leasing and Air Lease Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fly Leasing and Air Lease
The main advantage of trading using opposite Fly Leasing and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fly Leasing 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.Fly Leasing vs. GAMCO Global Gold | Fly Leasing vs. Dana Inc | Fly Leasing vs. BRP Inc | Fly Leasing vs. Modine Manufacturing |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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