Correlation Between Air Lease and Aperture Health
Can any of the company-specific risk be diversified away by investing in both Air Lease and Aperture Health 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 Aperture Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Aperture Health, you can compare the effects of market volatilities on Air Lease and Aperture Health 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 Aperture Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Aperture Health.
Diversification Opportunities for Air Lease and Aperture Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Aperture is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Aperture Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Health 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 Aperture Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Health has no effect on the direction of Air Lease i.e., Air Lease and Aperture Health go up and down completely randomly.
Pair Corralation between Air Lease and Aperture Health
If you would invest 5.90 in Aperture Health on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Aperture Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Air Lease vs. Aperture Health
Performance |
| Timeline |
| Air Lease |
| Aperture Health |
Air Lease and Aperture Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Aperture Health
The main advantage of trading using opposite Air Lease and Aperture Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Aperture Health 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 Aperture Health will offset losses from the drop in Aperture Health'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 |
| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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