Correlation Between AerCap Holdings and Welsbach Technology
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Welsbach Technology 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 Welsbach Technology 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 Welsbach Technology Metals, you can compare the effects of market volatilities on AerCap Holdings and Welsbach Technology 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 Welsbach Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Welsbach Technology.
Diversification Opportunities for AerCap Holdings and Welsbach Technology
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between AerCap and Welsbach is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Welsbach Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welsbach Technology 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 Welsbach Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welsbach Technology has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Welsbach Technology go up and down completely randomly.
Pair Corralation between AerCap Holdings and Welsbach Technology
Considering the 90-day investment horizon AerCap Holdings NV is expected to generate 0.11 times more return on investment than Welsbach Technology. However, AerCap Holdings NV is 8.9 times less risky than Welsbach Technology. It trades about 0.03 of its potential returns per unit of risk. Welsbach Technology Metals is currently generating about -0.31 per unit of risk. If you would invest 9,516 in AerCap Holdings NV on November 5, 2024 and sell it today you would earn a total of 44.00 from holding AerCap Holdings NV or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.63% |
| Values | Daily Returns |
AerCap Holdings NV vs. Welsbach Technology Metals
Performance |
| Timeline |
| AerCap Holdings NV |
| Welsbach Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AerCap Holdings and Welsbach Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Welsbach Technology
The main advantage of trading using opposite AerCap Holdings and Welsbach Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Welsbach Technology 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 Welsbach Technology will offset losses from the drop in Welsbach Technology's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Welsbach Technology vs. SNDL Inc | Welsbach Technology vs. Crimson Wine | Welsbach Technology vs. Diamond Estates Wines | Welsbach Technology vs. Apogee Therapeutics, Common |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |