Correlation Between Air Lease and Globus Maritime
Can any of the company-specific risk be diversified away by investing in both Air Lease and Globus Maritime 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 Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Globus Maritime, you can compare the effects of market volatilities on Air Lease and Globus Maritime 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 Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Globus Maritime.
Diversification Opportunities for Air Lease and Globus Maritime
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Globus is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime 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 Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of Air Lease i.e., Air Lease and Globus Maritime go up and down completely randomly.
Pair Corralation between Air Lease and Globus Maritime
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.63 times more return on investment than Globus Maritime. However, Air Lease is 1.6 times less risky than Globus Maritime. It trades about 0.04 of its potential returns per unit of risk. Globus Maritime is currently generating about -0.05 per unit of risk. If you would invest 3,904 in Air Lease on November 9, 2024 and sell it today you would earn a total of 720.00 from holding Air Lease or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Globus Maritime
Performance |
| Timeline |
| Air Lease |
| Globus Maritime |
Air Lease and Globus Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Globus Maritime
The main advantage of trading using opposite Air Lease and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Globus Maritime 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 Globus Maritime will offset losses from the drop in Globus Maritime'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 |
| Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. United Maritime | Globus Maritime vs. Performance Shipping | Globus Maritime vs. Castor Maritime |
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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