Correlation Between Air Lease and Boeing
Can any of the company-specific risk be diversified away by investing in both Air Lease and Boeing 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 Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and The Boeing, you can compare the effects of market volatilities on Air Lease and Boeing 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 Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Boeing.
Diversification Opportunities for Air Lease and Boeing
Very good diversification
The 3 months correlation between Air and Boeing is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of Air Lease i.e., Air Lease and Boeing go up and down completely randomly.
Pair Corralation between Air Lease and Boeing
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.79 times more return on investment than Boeing. However, Air Lease is 1.26 times less risky than Boeing. It trades about 0.39 of its potential returns per unit of risk. The Boeing is currently generating about 0.04 per unit of risk. If you would invest 4,497 in Air Lease on August 28, 2024 and sell it today you would earn a total of 719.00 from holding Air Lease or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. The Boeing
Performance |
| Timeline |
| Air Lease |
| Boeing |
Air Lease and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Boeing
The main advantage of trading using opposite Air Lease and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing'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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |