Correlation Between Air Lease and KOOL2PLAY
Can any of the company-specific risk be diversified away by investing in both Air Lease and KOOL2PLAY 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 KOOL2PLAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and KOOL2PLAY SA ZY, you can compare the effects of market volatilities on Air Lease and KOOL2PLAY 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 KOOL2PLAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and KOOL2PLAY.
Diversification Opportunities for Air Lease and KOOL2PLAY
Very good diversification
The 3 months correlation between Air and KOOL2PLAY is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and KOOL2PLAY SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOOL2PLAY SA ZY 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 KOOL2PLAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOOL2PLAY SA ZY has no effect on the direction of Air Lease i.e., Air Lease and KOOL2PLAY go up and down completely randomly.
Pair Corralation between Air Lease and KOOL2PLAY
Assuming the 90 days trading horizon Air Lease is expected to generate 0.17 times more return on investment than KOOL2PLAY. However, Air Lease is 5.93 times less risky than KOOL2PLAY. It trades about -0.2 of its potential returns per unit of risk. KOOL2PLAY SA ZY is currently generating about -0.22 per unit of risk. If you would invest 4,718 in Air Lease on October 10, 2024 and sell it today you would lose (158.00) from holding Air Lease or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. KOOL2PLAY SA ZY
Performance |
| Timeline |
| Air Lease |
| KOOL2PLAY SA ZY |
Air Lease and KOOL2PLAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and KOOL2PLAY
The main advantage of trading using opposite Air Lease and KOOL2PLAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, KOOL2PLAY 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 KOOL2PLAY will offset losses from the drop in KOOL2PLAY's long position.| Air Lease vs. United Insurance Holdings | Air Lease vs. Vienna Insurance Group | Air Lease vs. ePlay Digital | Air Lease vs. ZURICH INSURANCE GROUP |
| KOOL2PLAY vs. Sunny Optical Technology | KOOL2PLAY vs. AEON STORES | KOOL2PLAY vs. GLG LIFE TECH | KOOL2PLAY vs. FAST RETAIL ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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