Correlation Between Air Lease and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both Air Lease and KORN FERRY 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 KORN FERRY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and KORN FERRY INTL, you can compare the effects of market volatilities on Air Lease and KORN FERRY 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 KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and KORN FERRY.
Diversification Opportunities for Air Lease and KORN FERRY
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Air and KORN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and KORN FERRY INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORN FERRY INTL 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 KORN FERRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORN FERRY INTL has no effect on the direction of Air Lease i.e., Air Lease and KORN FERRY go up and down completely randomly.
Pair Corralation between Air Lease and KORN FERRY
Assuming the 90 days trading horizon Air Lease is expected to generate 0.79 times more return on investment than KORN FERRY. However, Air Lease is 1.26 times less risky than KORN FERRY. It trades about 0.2 of its potential returns per unit of risk. KORN FERRY INTL is currently generating about 0.05 per unit of risk. If you would invest 4,060 in Air Lease on September 13, 2024 and sell it today you would earn a total of 640.00 from holding Air Lease or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Air Lease vs. KORN FERRY INTL
Performance |
| Timeline |
| Air Lease |
| KORN FERRY INTL |
Air Lease and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and KORN FERRY
The main advantage of trading using opposite Air Lease and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, KORN FERRY 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 KORN FERRY will offset losses from the drop in KORN FERRY'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 |
| KORN FERRY vs. Axcelis Technologies | KORN FERRY vs. Pembina Pipeline Corp | KORN FERRY vs. PKSHA TECHNOLOGY INC | KORN FERRY vs. Playtech plc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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