Correlation Between Air Lease and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both Air Lease and Agricultural Bank 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 Agricultural Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Agricultural Bank of, you can compare the effects of market volatilities on Air Lease and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Agricultural Bank.
Diversification Opportunities for Air Lease and Agricultural Bank
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Air and Agricultural is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Air Lease i.e., Air Lease and Agricultural Bank go up and down completely randomly.
Pair Corralation between Air Lease and Agricultural Bank
Assuming the 90 days trading horizon Air Lease is expected to generate 18.57 times less return on investment than Agricultural Bank. But when comparing it to its historical volatility, Air Lease is 4.99 times less risky than Agricultural Bank. It trades about 0.02 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9.25 in Agricultural Bank of on October 30, 2024 and sell it today you would earn a total of 42.75 from holding Agricultural Bank of or generate 462.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Agricultural Bank of
Performance |
| Timeline |
| Air Lease |
| Agricultural Bank |
Air Lease and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Agricultural Bank
The main advantage of trading using opposite Air Lease and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Air Lease vs. ADRIATIC METALS LS 013355 | Air Lease vs. 24SEVENOFFICE GROUP AB | Air Lease vs. Zijin Mining Group | Air Lease vs. MAGNUM MINING EXP |
| Agricultural Bank vs. Allegheny Technologies Incorporated | Agricultural Bank vs. WESANA HEALTH HOLD | Agricultural Bank vs. Playtech plc | Agricultural Bank vs. AAC TECHNOLOGHLDGADR |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |