Correlation Between Air Lease and ANGLO ASIAN
Can any of the company-specific risk be diversified away by investing in both Air Lease and ANGLO ASIAN 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 ANGLO ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and ANGLO ASIAN MINING, you can compare the effects of market volatilities on Air Lease and ANGLO ASIAN 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 ANGLO ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and ANGLO ASIAN.
Diversification Opportunities for Air Lease and ANGLO ASIAN
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and ANGLO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and ANGLO ASIAN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLO ASIAN MINING 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 ANGLO ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLO ASIAN MINING has no effect on the direction of Air Lease i.e., Air Lease and ANGLO ASIAN go up and down completely randomly.
Pair Corralation between Air Lease and ANGLO ASIAN
Assuming the 90 days trading horizon Air Lease is expected to generate 0.68 times more return on investment than ANGLO ASIAN. However, Air Lease is 1.46 times less risky than ANGLO ASIAN. It trades about 0.09 of its potential returns per unit of risk. ANGLO ASIAN MINING is currently generating about -0.02 per unit of risk. If you would invest 4,041 in Air Lease on November 2, 2024 and sell it today you would earn a total of 359.00 from holding Air Lease or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Air Lease vs. ANGLO ASIAN MINING
Performance |
| Timeline |
| Air Lease |
| ANGLO ASIAN MINING |
Air Lease and ANGLO ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and ANGLO ASIAN
The main advantage of trading using opposite Air Lease and ANGLO ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, ANGLO ASIAN 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 ANGLO ASIAN will offset losses from the drop in ANGLO ASIAN'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 |
| ANGLO ASIAN vs. BII Railway Transportation | ANGLO ASIAN vs. NAGOYA RAILROAD | ANGLO ASIAN vs. The Boston Beer | ANGLO ASIAN vs. TITANIUM TRANSPORTGROUP |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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