Correlation Between Air Lease and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both Air Lease and WIMFARM SA 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 WIMFARM SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and WIMFARM SA EO, you can compare the effects of market volatilities on Air Lease and WIMFARM SA 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 WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and WIMFARM SA.
Diversification Opportunities for Air Lease and WIMFARM SA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and WIMFARM is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO 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 WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of Air Lease i.e., Air Lease and WIMFARM SA go up and down completely randomly.
Pair Corralation between Air Lease and WIMFARM SA
Assuming the 90 days trading horizon Air Lease is expected to generate 0.34 times more return on investment than WIMFARM SA. However, Air Lease is 2.93 times less risky than WIMFARM SA. It trades about -0.1 of its potential returns per unit of risk. WIMFARM SA EO is currently generating about -0.13 per unit of risk. If you would invest 4,560 in Air Lease on November 6, 2024 and sell it today you would lose (140.00) from holding Air Lease or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Air Lease vs. WIMFARM SA EO
Performance |
| Timeline |
| Air Lease |
| WIMFARM SA EO |
Air Lease and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and WIMFARM SA
The main advantage of trading using opposite Air Lease and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| Air Lease vs. United Rentals | Air Lease vs. AMERCO | Air Lease vs. WillScot Mobile Mini | Air Lease vs. Avis Budget Group |
| WIMFARM SA vs. Pebblebrook Hotel Trust | WIMFARM SA vs. Sunstone Hotel Investors | WIMFARM SA vs. China Resources Beer | WIMFARM SA vs. HYATT HOTELS A |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |