Correlation Between Air Lease and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Air Lease and Fidelity National 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 Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Fidelity National Information, you can compare the effects of market volatilities on Air Lease and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Fidelity National.
Diversification Opportunities for Air Lease and Fidelity National
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Air Lease i.e., Air Lease and Fidelity National go up and down completely randomly.
Pair Corralation between Air Lease and Fidelity National
Assuming the 90 days trading horizon Air Lease is expected to generate 2.33 times less return on investment than Fidelity National. In addition to that, Air Lease is 1.19 times more volatile than Fidelity National Information. It trades about 0.01 of its total potential returns per unit of risk. Fidelity National Information is currently generating about 0.04 per unit of volatility. If you would invest 5,306 in Fidelity National Information on January 16, 2025 and sell it today you would earn a total of 988.00 from holding Fidelity National Information or generate 18.62% 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. Fidelity National Information
Performance |
| Timeline |
| Air Lease |
| Fidelity National |
Air Lease and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Fidelity National
The main advantage of trading using opposite Air Lease and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Air Lease vs. KENEDIX OFFICE INV | Air Lease vs. Yuexiu Transport Infrastructure | Air Lease vs. AMAG Austria Metall | Air Lease vs. CITY OFFICE REIT |
| Fidelity National vs. TRADELINK ELECTRON | Fidelity National vs. Retail Estates NV | Fidelity National vs. SCANSOURCE | Fidelity National vs. GOLDQUEST MINING |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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