Correlation Between Air Lease and PACIFIC
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By analyzing existing cross correlation between Air Lease and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Air Lease and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and PACIFIC.
Diversification Opportunities for Air Lease and PACIFIC
Significant diversification
The 3 months correlation between Air and PACIFIC is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Air Lease i.e., Air Lease and PACIFIC go up and down completely randomly.
Pair Corralation between Air Lease and PACIFIC
Allowing for the 90-day total investment horizon Air Lease is expected to generate 12.2 times more return on investment than PACIFIC. However, Air Lease is 12.2 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.15 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about 0.01 per unit of risk. If you would invest 4,382 in Air Lease on September 5, 2024 and sell it today you would earn a total of 661.00 from holding Air Lease or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Air Lease vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Air Lease |
| PACIFIC GAS ELECTRIC |
Air Lease and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and PACIFIC
The main advantage of trading using opposite Air Lease and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC'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 |
| PACIFIC vs. Air Lease | PACIFIC vs. Boston Properties | PACIFIC vs. Bassett Furniture Industries | PACIFIC vs. Addus HomeCare |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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