Correlation Between AerCap Holdings and Textainer Group
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Textainer Group 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 Textainer Group 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 Textainer Group Holdings, you can compare the effects of market volatilities on AerCap Holdings and Textainer Group 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 Textainer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Textainer Group.
Diversification Opportunities for AerCap Holdings and Textainer Group
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AerCap and Textainer is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Textainer Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textainer Group Holdings 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 Textainer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textainer Group Holdings has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Textainer Group go up and down completely randomly.
Pair Corralation between AerCap Holdings and Textainer Group
If you would invest 9,494 in AerCap Holdings NV on September 18, 2024 and sell it today you would earn a total of 122.00 from holding AerCap Holdings NV or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AerCap Holdings NV vs. Textainer Group Holdings
Performance |
| Timeline |
| AerCap Holdings NV |
| Textainer Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AerCap Holdings and Textainer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Textainer Group
The main advantage of trading using opposite AerCap Holdings and Textainer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Textainer Group 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 Textainer Group will offset losses from the drop in Textainer Group's long position.| AerCap Holdings vs. McGrath RentCorp | AerCap Holdings vs. Custom Truck One | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings |
| Textainer Group vs. Ryder System | Textainer Group vs. Triton International Limited | Textainer Group vs. Air Lease | Textainer Group vs. Herc Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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