Correlation Between Air Lease and Getty Images
Can any of the company-specific risk be diversified away by investing in both Air Lease and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Getty Images Holdings, you can compare the effects of market volatilities on Air Lease and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Getty Images.
Diversification Opportunities for Air Lease and Getty Images
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Getty is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Air Lease i.e., Air Lease and Getty Images go up and down completely randomly.
Pair Corralation between Air Lease and Getty Images
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.4 times more return on investment than Getty Images. However, Air Lease is 2.52 times less risky than Getty Images. It trades about 0.04 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.01 per unit of risk. If you would invest 3,685 in Air Lease on September 14, 2024 and sell it today you would earn a total of 1,231 from holding Air Lease or generate 33.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Getty Images Holdings
Performance |
| Timeline |
| Air Lease |
| Getty Images Holdings |
Air Lease and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Getty Images
The main advantage of trading using opposite Air Lease and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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