Correlation Between Air Lease and NIGHTINGALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Air Lease and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and NIGHTINGALE HEALTH EO, you can compare the effects of market volatilities on Air Lease and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and NIGHTINGALE HEALTH.
Diversification Opportunities for Air Lease and NIGHTINGALE HEALTH
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and NIGHTINGALE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of Air Lease i.e., Air Lease and NIGHTINGALE HEALTH go up and down completely randomly.
Pair Corralation between Air Lease and NIGHTINGALE HEALTH
Assuming the 90 days trading horizon Air Lease is expected to generate 7.44 times less return on investment than NIGHTINGALE HEALTH. But when comparing it to its historical volatility, Air Lease is 2.32 times less risky than NIGHTINGALE HEALTH. It trades about 0.02 of its potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 102.00 in NIGHTINGALE HEALTH EO on November 2, 2024 and sell it today you would earn a total of 193.00 from holding NIGHTINGALE HEALTH EO or generate 189.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. NIGHTINGALE HEALTH EO
Performance |
| Timeline |
| Air Lease |
| NIGHTINGALE HEALTH |
Air Lease and NIGHTINGALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and NIGHTINGALE HEALTH
The main advantage of trading using opposite Air Lease and NIGHTINGALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH will offset losses from the drop in NIGHTINGALE HEALTH's long position.| Air Lease vs. Jacquet Metal Service | Air Lease vs. Penn National Gaming | Air Lease vs. PLAYMATES TOYS | Air Lease vs. CONTAGIOUS GAMING INC |
| NIGHTINGALE HEALTH vs. Veeva Systems | NIGHTINGALE HEALTH vs. 10X GENOMICS DL | NIGHTINGALE HEALTH vs. Evolent Health | NIGHTINGALE HEALTH vs. COMPUGROUP MEDSPADR 1 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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