Correlation Between Air Lease and DAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air Lease and DAX Index, you can compare the effects of market volatilities on Air Lease and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and DAX Index.
Diversification Opportunities for Air Lease and DAX Index
Very weak diversification
The 3 months correlation between Air and DAX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Air Lease i.e., Air Lease and DAX Index go up and down completely randomly.
Pair Corralation between Air Lease and DAX Index
Assuming the 90 days trading horizon Air Lease is expected to generate 1.48 times less return on investment than DAX Index. In addition to that, Air Lease is 2.69 times more volatile than DAX Index. It trades about 0.13 of its total potential returns per unit of risk. DAX Index is currently generating about 0.51 per unit of volatility. If you would invest 1,918,919 in DAX Index on September 17, 2024 and sell it today you would earn a total of 121,673 from holding DAX Index or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. DAX Index
Performance |
| Timeline |
Air Lease and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Air Lease
Pair trading matchups for Air Lease
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Air Lease and DAX Index
The main advantage of trading using opposite Air Lease and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Air Lease vs. United Rentals | Air Lease vs. Superior Plus Corp | Air Lease vs. SIVERS SEMICONDUCTORS AB | Air Lease vs. Norsk Hydro ASA |
| DAX Index vs. Broadcom | DAX Index vs. Air Lease | DAX Index vs. Air Transport Services | DAX Index vs. Liberty Broadband |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |