Correlation Between Air Lease and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Air Lease and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Air Lease and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and PLAYTIKA HOLDING.
Diversification Opportunities for Air Lease and PLAYTIKA HOLDING
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Air and PLAYTIKA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Air Lease i.e., Air Lease and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Air Lease and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Air Lease is expected to generate 0.84 times more return on investment than PLAYTIKA HOLDING. However, Air Lease is 1.18 times less risky than PLAYTIKA HOLDING. It trades about 0.37 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.16 per unit of risk. If you would invest 4,040 in Air Lease on September 1, 2024 and sell it today you would earn a total of 720.00 from holding Air Lease or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Air Lease |
| PLAYTIKA HOLDING |
Air Lease and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and PLAYTIKA HOLDING
The main advantage of trading using opposite Air Lease and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| Air Lease vs. Caseys General Stores | Air Lease vs. Ping An Insurance | Air Lease vs. Selective Insurance Group | Air Lease vs. The Hanover Insurance |
| PLAYTIKA HOLDING vs. Air Transport Services | PLAYTIKA HOLDING vs. TITANIUM TRANSPORTGROUP | PLAYTIKA HOLDING vs. Playtech plc | PLAYTIKA HOLDING vs. Gold Road Resources |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |