Correlation Between Air Lease and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Air Lease and Cresud SACIF 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 Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Cresud SACIF y, you can compare the effects of market volatilities on Air Lease and Cresud SACIF 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 Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Cresud SACIF.
Diversification Opportunities for Air Lease and Cresud SACIF
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Cresud is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y 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 Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Air Lease i.e., Air Lease and Cresud SACIF go up and down completely randomly.
Pair Corralation between Air Lease and Cresud SACIF
Allowing for the 90-day total investment horizon Air Lease is expected to generate 2.65 times less return on investment than Cresud SACIF. But when comparing it to its historical volatility, Air Lease is 3.68 times less risky than Cresud SACIF. It trades about 0.3 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 69.00 in Cresud SACIF y on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Cresud SACIF y or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Cresud SACIF y
Performance |
| Timeline |
| Air Lease |
| Cresud SACIF y |
Air Lease and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Cresud SACIF
The main advantage of trading using opposite Air Lease and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF'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 |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Aquagold International | Cresud SACIF vs. Thrivent High Yield | Cresud SACIF vs. Morningstar Unconstrained Allocation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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