Correlation Between Air Lease and Under Armour
Can any of the company-specific risk be diversified away by investing in both Air Lease and Under Armour 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 Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Under Armour C, you can compare the effects of market volatilities on Air Lease and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Under Armour.
Diversification Opportunities for Air Lease and Under Armour
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Under is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Air Lease i.e., Air Lease and Under Armour go up and down completely randomly.
Pair Corralation between Air Lease and Under Armour
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.3 times more return on investment than Under Armour. However, Air Lease is 3.37 times less risky than Under Armour. It trades about 0.37 of its potential returns per unit of risk. Under Armour C is currently generating about 0.11 per unit of risk. If you would invest 4,435 in Air Lease on September 1, 2024 and sell it today you would earn a total of 655.00 from holding Air Lease or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Under Armour C
Performance |
| Timeline |
| Air Lease |
| Under Armour C |
Air Lease and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Under Armour
The main advantage of trading using opposite Air Lease and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.| Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. PROG Holdings | Air Lease vs. Custom Truck One |
| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |