Correlation Between Air Lease and ALTRIA
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By analyzing existing cross correlation between Air Lease and ALTRIA GROUP INC, you can compare the effects of market volatilities on Air Lease and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and ALTRIA.
Diversification Opportunities for Air Lease and ALTRIA
Very good diversification
The 3 months correlation between Air and ALTRIA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of Air Lease i.e., Air Lease and ALTRIA go up and down completely randomly.
Pair Corralation between Air Lease and ALTRIA
Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.08 times more return on investment than ALTRIA. However, Air Lease is 1.08 times more volatile than ALTRIA GROUP INC. It trades about 0.05 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about 0.01 per unit of risk. If you would invest 3,570 in Air Lease on September 12, 2024 and sell it today you would earn a total of 1,441 from holding Air Lease or generate 40.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Air Lease vs. ALTRIA GROUP INC
Performance |
| Timeline |
| Air Lease |
| ALTRIA GROUP INC |
Air Lease and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and ALTRIA
The main advantage of trading using opposite Air Lease and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA's long position.| Air Lease vs. McGrath RentCorp | Air Lease vs. Alta Equipment Group | Air Lease vs. Custom Truck One | Air Lease vs. GATX Corporation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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