Correlation Between AerCap Holdings and Iris Energy
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Iris Energy 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 AerCap Holdings and Iris Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerCap Holdings NV and Iris Energy, you can compare the effects of market volatilities on AerCap Holdings and Iris Energy 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 AerCap Holdings with a short position of Iris Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Iris Energy.
Diversification Opportunities for AerCap Holdings and Iris Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AerCap and Iris is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Iris Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iris Energy and AerCap Holdings 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 AerCap Holdings NV are associated (or correlated) with Iris Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iris Energy has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Iris Energy go up and down completely randomly.
Pair Corralation between AerCap Holdings and Iris Energy
Considering the 90-day investment horizon AerCap Holdings is expected to generate 7.4 times less return on investment than Iris Energy. But when comparing it to its historical volatility, AerCap Holdings NV is 6.85 times less risky than Iris Energy. It trades about 0.11 of its potential returns per unit of risk. Iris Energy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Iris Energy on August 26, 2024 and sell it today you would earn a total of 153.00 from holding Iris Energy or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerCap Holdings NV vs. Iris Energy
Performance |
| Timeline |
| AerCap Holdings NV |
| Iris Energy |
AerCap Holdings and Iris Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Iris Energy
The main advantage of trading using opposite AerCap Holdings and Iris Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Iris Energy 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 Iris Energy will offset losses from the drop in Iris Energy's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Iris Energy vs. Corporacion America Airports | Iris Energy vs. Mayfair Gold Corp | Iris Energy vs. AerCap Holdings NV | Iris Energy vs. United Rentals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |