Correlation Between AIRA Factoring and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Amanah Leasing 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 AIRA Factoring and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Factoring Public and Amanah Leasing Public, you can compare the effects of market volatilities on AIRA Factoring and Amanah Leasing 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 AIRA Factoring with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Amanah Leasing.
Diversification Opportunities for AIRA Factoring and Amanah Leasing
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIRA and Amanah is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Amanah Leasing go up and down completely randomly.
Pair Corralation between AIRA Factoring and Amanah Leasing
Assuming the 90 days horizon AIRA Factoring Public is expected to generate 2.32 times more return on investment than Amanah Leasing. However, AIRA Factoring is 2.32 times more volatile than Amanah Leasing Public. It trades about -0.1 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.29 per unit of risk. If you would invest 80.00 in AIRA Factoring Public on August 25, 2024 and sell it today you would lose (21.00) from holding AIRA Factoring Public or give up 26.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Factoring Public vs. Amanah Leasing Public
Performance |
| Timeline |
| AIRA Factoring Public |
| Amanah Leasing Public |
AIRA Factoring and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Amanah Leasing
The main advantage of trading using opposite AIRA Factoring and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| AIRA Factoring vs. Amanah Leasing Public | AIRA Factoring vs. Infraset Public | AIRA Factoring vs. JMT Network Services |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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