Correlation Between Air Lease and AOYAMA TRADING
Can any of the company-specific risk be diversified away by investing in both Air Lease and AOYAMA TRADING 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 AOYAMA TRADING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and AOYAMA TRADING, you can compare the effects of market volatilities on Air Lease and AOYAMA TRADING 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 AOYAMA TRADING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and AOYAMA TRADING.
Diversification Opportunities for Air Lease and AOYAMA TRADING
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Air and AOYAMA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and AOYAMA TRADING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOYAMA TRADING 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 AOYAMA TRADING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOYAMA TRADING has no effect on the direction of Air Lease i.e., Air Lease and AOYAMA TRADING go up and down completely randomly.
Pair Corralation between Air Lease and AOYAMA TRADING
Assuming the 90 days trading horizon Air Lease is expected to generate 5.39 times less return on investment than AOYAMA TRADING. But when comparing it to its historical volatility, Air Lease is 1.75 times less risky than AOYAMA TRADING. It trades about 0.04 of its potential returns per unit of risk. AOYAMA TRADING is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 850.00 in AOYAMA TRADING on September 19, 2024 and sell it today you would earn a total of 550.00 from holding AOYAMA TRADING or generate 64.71% 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. AOYAMA TRADING
Performance |
| Timeline |
| Air Lease |
| AOYAMA TRADING |
Air Lease and AOYAMA TRADING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and AOYAMA TRADING
The main advantage of trading using opposite Air Lease and AOYAMA TRADING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, AOYAMA TRADING 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 AOYAMA TRADING will offset losses from the drop in AOYAMA TRADING's long position.| Air Lease vs. Gruppo Mutuionline SpA | Air Lease vs. MITSUBISHI STEEL MFG | Air Lease vs. GFL ENVIRONM | Air Lease vs. YATRA ONLINE DL 0001 |
| AOYAMA TRADING vs. FAST RETAIL ADR | AOYAMA TRADING vs. CCC SA | AOYAMA TRADING vs. Superior Plus Corp | AOYAMA TRADING vs. SIVERS SEMICONDUCTORS AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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