Correlation Between Air Lease and AULT Old
Can any of the company-specific risk be diversified away by investing in both Air Lease and AULT Old 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 AULT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and AULT Old, you can compare the effects of market volatilities on Air Lease and AULT Old 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 AULT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and AULT Old.
Diversification Opportunities for Air Lease and AULT Old
Average diversification
The 3 months correlation between Air and AULT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and AULT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AULT Old 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 AULT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AULT Old has no effect on the direction of Air Lease i.e., Air Lease and AULT Old go up and down completely randomly.
Pair Corralation between Air Lease and AULT Old
If you would invest 21.00 in AULT Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding AULT Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Air Lease vs. AULT Old
Performance |
| Timeline |
| Air Lease |
| AULT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease and AULT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and AULT Old
The main advantage of trading using opposite Air Lease and AULT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, AULT Old 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 AULT Old will offset losses from the drop in AULT Old'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 |
| AULT Old vs. BRP Inc | AULT Old vs. Royalty Management Holding | AULT Old vs. Wabash National | AULT Old vs. Carlyle Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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