Correlation Between Air Lease and Fuquan Capital
Can any of the company-specific risk be diversified away by investing in both Air Lease and Fuquan Capital 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 Fuquan Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Fuquan Capital Management, you can compare the effects of market volatilities on Air Lease and Fuquan Capital 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 Fuquan Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Fuquan Capital.
Diversification Opportunities for Air Lease and Fuquan Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Fuquan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Fuquan Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuquan Capital Management 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 Fuquan Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuquan Capital Management has no effect on the direction of Air Lease i.e., Air Lease and Fuquan Capital go up and down completely randomly.
Pair Corralation between Air Lease and Fuquan Capital
If you would invest 3,570 in Air Lease on September 12, 2024 and sell it today you would earn a total of 1,441 from holding Air Lease or generate 40.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Air Lease vs. Fuquan Capital Management
Performance |
| Timeline |
| Air Lease |
| Fuquan Capital Management |
Air Lease and Fuquan Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Fuquan Capital
The main advantage of trading using opposite Air Lease and Fuquan Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Fuquan Capital 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 Fuquan Capital will offset losses from the drop in Fuquan Capital's long position.| Air Lease vs. McGrath RentCorp | Air Lease vs. Alta Equipment Group | Air Lease vs. Custom Truck One | Air Lease vs. GATX Corporation |
| Fuquan Capital vs. Air Lease | Fuquan Capital vs. Lipocine | Fuquan Capital vs. Apogee Therapeutics, Common | Fuquan Capital vs. Inhibrx |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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