Correlation Between Air Lease and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Air Lease and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Air Lease and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and EIDESVIK OFFSHORE.
Diversification Opportunities for Air Lease and EIDESVIK OFFSHORE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and EIDESVIK is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Air Lease i.e., Air Lease and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Air Lease and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon Air Lease is expected to generate 0.68 times more return on investment than EIDESVIK OFFSHORE. However, Air Lease is 1.48 times less risky than EIDESVIK OFFSHORE. It trades about 0.06 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.03 per unit of risk. If you would invest 3,644 in Air Lease on September 12, 2024 and sell it today you would earn a total of 1,096 from holding Air Lease or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Air Lease |
| EIDESVIK OFFSHORE |
Air Lease and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and EIDESVIK OFFSHORE
The main advantage of trading using opposite Air Lease and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Air Lease vs. United Rentals | Air Lease vs. WillScot Mobile Mini | Air Lease vs. Superior Plus Corp | Air Lease vs. SIVERS SEMICONDUCTORS AB |
| EIDESVIK OFFSHORE vs. TAL Education Group | EIDESVIK OFFSHORE vs. PLAYTIKA HOLDING DL 01 | EIDESVIK OFFSHORE vs. GigaMedia | EIDESVIK OFFSHORE vs. DeVry Education Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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