Correlation Between GREENX METALS and Air Lease
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Air Lease, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Air Lease.
Diversification Opportunities for GREENX METALS and Air Lease
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and Air is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Air Lease go up and down completely randomly.
Pair Corralation between GREENX METALS and Air Lease
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Air Lease. In addition to that, GREENX METALS is 2.88 times more volatile than Air Lease. It trades about -0.06 of its total potential returns per unit of risk. Air Lease is currently generating about 0.1 per unit of volatility. If you would invest 4,540 in Air Lease on September 12, 2024 and sell it today you would earn a total of 160.00 from holding Air Lease or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Air Lease
Performance |
| Timeline |
| GREENX METALS LTD |
| Air Lease |
GREENX METALS and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Air Lease
The main advantage of trading using opposite GREENX METALS and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
| Air Lease vs. United Rentals | Air Lease vs. WillScot Mobile Mini | Air Lease vs. Superior Plus Corp | Air Lease vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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