Correlation Between Air Lease and DOMTAR
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By analyzing existing cross correlation between Air Lease and DOMTAR P 675, you can compare the effects of market volatilities on Air Lease and DOMTAR 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 DOMTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and DOMTAR.
Diversification Opportunities for Air Lease and DOMTAR
Average diversification
The 3 months correlation between Air and DOMTAR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and DOMTAR P 675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMTAR P 675 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 DOMTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMTAR P 675 has no effect on the direction of Air Lease i.e., Air Lease and DOMTAR go up and down completely randomly.
Pair Corralation between Air Lease and DOMTAR
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.52 times more return on investment than DOMTAR. However, Air Lease is 1.92 times less risky than DOMTAR. It trades about 0.05 of its potential returns per unit of risk. DOMTAR P 675 is currently generating about 0.01 per unit of risk. If you would invest 4,058 in Air Lease on September 14, 2024 and sell it today you would earn a total of 858.00 from holding Air Lease or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.16% |
| Values | Daily Returns |
Air Lease vs. DOMTAR P 675
Performance |
| Timeline |
| Air Lease |
| DOMTAR P 675 |
Air Lease and DOMTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and DOMTAR
The main advantage of trading using opposite Air Lease and DOMTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, DOMTAR 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 DOMTAR will offset losses from the drop in DOMTAR'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 |
| DOMTAR vs. Consol Energy | DOMTAR vs. Highway Holdings Limited | DOMTAR vs. Evolution Mining | DOMTAR vs. Olympic Steel |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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