Correlation Between Air Lease and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Air Lease and MagnaChip Semiconductor 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 MagnaChip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and MagnaChip Semiconductor, you can compare the effects of market volatilities on Air Lease and MagnaChip Semiconductor 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 MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and MagnaChip Semiconductor.
Diversification Opportunities for Air Lease and MagnaChip Semiconductor
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and MagnaChip is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and MagnaChip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor 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 MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of Air Lease i.e., Air Lease and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between Air Lease and MagnaChip Semiconductor
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.76 times more return on investment than MagnaChip Semiconductor. However, Air Lease is 1.32 times less risky than MagnaChip Semiconductor. It trades about 0.04 of its potential returns per unit of risk. MagnaChip Semiconductor is currently generating about -0.05 per unit of risk. If you would invest 3,708 in Air Lease on September 2, 2024 and sell it today you would earn a total of 1,382 from holding Air Lease or generate 37.27% 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. MagnaChip Semiconductor
Performance |
| Timeline |
| Air Lease |
| MagnaChip Semiconductor |
Air Lease and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and MagnaChip Semiconductor
The main advantage of trading using opposite Air Lease and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor'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 |
| MagnaChip Semiconductor vs. NXP Semiconductors NV | MagnaChip Semiconductor vs. GSI Technology | MagnaChip Semiconductor vs. MaxLinear | MagnaChip Semiconductor vs. Texas Instruments Incorporated |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world |