Correlation Between Air Lease and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Air Lease and Multi Ways 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 Multi Ways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Multi Ways Holdings, you can compare the effects of market volatilities on Air Lease and Multi Ways 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 Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Multi Ways.
Diversification Opportunities for Air Lease and Multi Ways
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Multi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways 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 Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Air Lease i.e., Air Lease and Multi Ways go up and down completely randomly.
Pair Corralation between Air Lease and Multi Ways
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.44 times more return on investment than Multi Ways. However, Air Lease is 2.26 times less risky than Multi Ways. It trades about 0.08 of its potential returns per unit of risk. Multi Ways Holdings is currently generating about 0.01 per unit of risk. If you would invest 4,803 in Air Lease on September 18, 2024 and sell it today you would earn a total of 105.00 from holding Air Lease or generate 2.19% 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. Multi Ways Holdings
Performance |
| Timeline |
| Air Lease |
| Multi Ways Holdings |
Air Lease and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Multi Ways
The main advantage of trading using opposite Air Lease and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Air Lease vs. McGrath RentCorp | Air Lease vs. Custom Truck One | Air Lease vs. Alta Equipment Group | Air Lease vs. PROG Holdings |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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