Correlation Between Air Lease and Ampco Pittsburgh
Can any of the company-specific risk be diversified away by investing in both Air Lease and Ampco Pittsburgh 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 Air Lease and Ampco Pittsburgh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Ampco Pittsburgh, you can compare the effects of market volatilities on Air Lease and Ampco Pittsburgh 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 Air Lease with a short position of Ampco Pittsburgh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Ampco Pittsburgh.
Diversification Opportunities for Air Lease and Ampco Pittsburgh
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Ampco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Ampco Pittsburgh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh and Air Lease 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 Air Lease are associated (or correlated) with Ampco Pittsburgh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampco Pittsburgh has no effect on the direction of Air Lease i.e., Air Lease and Ampco Pittsburgh go up and down completely randomly.
Pair Corralation between Air Lease and Ampco Pittsburgh
Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.38 times less return on investment than Ampco Pittsburgh. But when comparing it to its historical volatility, Air Lease is 2.48 times less risky than Ampco Pittsburgh. It trades about 0.27 of its potential returns per unit of risk. Ampco Pittsburgh is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Ampco Pittsburgh on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Ampco Pittsburgh or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Ampco Pittsburgh
Performance |
| Timeline |
| Air Lease |
| Ampco Pittsburgh |
Air Lease and Ampco Pittsburgh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Ampco Pittsburgh
The main advantage of trading using opposite Air Lease and Ampco Pittsburgh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Ampco Pittsburgh 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 Ampco Pittsburgh will offset losses from the drop in Ampco Pittsburgh's long position.| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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