Correlation Between Bill and Air Lease

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Can any of the company-specific risk be diversified away by investing in both Bill and Air Lease 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 Bill and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bill Com Holdings and Air Lease, you can compare the effects of market volatilities on Bill and Air Lease 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 Bill with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and Air Lease.

Diversification Opportunities for Bill and Air Lease

BillAirDiversified AwayBillAirDiversified Away100%
0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Bill and Air is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Bill 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 Bill Com Holdings are associated (or correlated) with Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Bill i.e., Bill and Air Lease go up and down completely randomly.

Pair Corralation between Bill and Air Lease

Given the investment horizon of 90 days Bill Com Holdings is expected to generate 1.92 times more return on investment than Air Lease. However, Bill is 1.92 times more volatile than Air Lease. It trades about 0.0 of its potential returns per unit of risk. Air Lease is currently generating about -0.01 per unit of risk. If you would invest  6,302  in Bill Com Holdings on November 24, 2024 and sell it today you would lose (1,029) from holding Bill Com Holdings or give up 16.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bill Com Holdings  vs.  Air Lease

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15BILL AL
       Timeline  
Bill Com Holdings 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb60708090100
Air Lease 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Air Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4546474849505152

Bill and Air Lease Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.55-6.41-4.26-2.11-0.021.853.765.677.589.49 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15BILL AL
       Returns  

Pair Trading with Bill and Air Lease

The main advantage of trading using opposite Bill and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.
The idea behind Bill Com Holdings and Air Lease pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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