Correlation Between Air Lease and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Air Lease and GREENX METALS 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 GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and GREENX METALS LTD, you can compare the effects of market volatilities on Air Lease and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and GREENX METALS.
Diversification Opportunities for Air Lease and GREENX METALS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and GREENX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Air Lease i.e., Air Lease and GREENX METALS go up and down completely randomly.
Pair Corralation between Air Lease and GREENX METALS
Assuming the 90 days trading horizon Air Lease is expected to generate 1.63 times less return on investment than GREENX METALS. But when comparing it to its historical volatility, Air Lease is 2.84 times less risky than GREENX METALS. It trades about 0.05 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 39.00 in GREENX METALS LTD on September 5, 2024 and sell it today you would earn a total of 4.00 from holding GREENX METALS LTD or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. GREENX METALS LTD
Performance |
| Timeline |
| Air Lease |
| GREENX METALS LTD |
Air Lease and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and GREENX METALS
The main advantage of trading using opposite Air Lease and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Air Lease vs. RETAIL FOOD GROUP | Air Lease vs. TYSON FOODS A | Air Lease vs. United Natural Foods | Air Lease vs. Performance Food Group |
| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. AJ LUCAS GROUP | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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