Correlation Between Air Lease and Take Two
Can any of the company-specific risk be diversified away by investing in both Air Lease and Take Two 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 Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Take Two Interactive Software, you can compare the effects of market volatilities on Air Lease and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Take Two.
Diversification Opportunities for Air Lease and Take Two
Almost no diversification
The 3 months correlation between Air and Take is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Air Lease i.e., Air Lease and Take Two go up and down completely randomly.
Pair Corralation between Air Lease and Take Two
Assuming the 90 days trading horizon Air Lease is expected to generate 1.27 times less return on investment than Take Two. In addition to that, Air Lease is 1.2 times more volatile than Take Two Interactive Software. It trades about 0.34 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.52 per unit of volatility. If you would invest 14,772 in Take Two Interactive Software on September 2, 2024 and sell it today you would earn a total of 3,126 from holding Take Two Interactive Software or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Take Two Interactive Software
Performance |
| Timeline |
| Air Lease |
| Take Two Interactive |
Air Lease and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Take Two
The main advantage of trading using opposite Air Lease and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech | Air Lease vs. SIVERS SEMICONDUCTORS AB |
| Take Two vs. Nintendo Co | Take Two vs. Sea Limited | Take Two vs. Superior Plus Corp | Take Two vs. NMI Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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