Correlation Between Chiba Bank and Air Lease
Can any of the company-specific risk be diversified away by investing in both Chiba Bank 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 Chiba Bank and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank Ltd and Air Lease, you can compare the effects of market volatilities on Chiba Bank 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 Chiba Bank with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and Air Lease.
Diversification Opportunities for Chiba Bank and Air Lease
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chiba and Air is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Chiba Bank 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 Chiba Bank Ltd 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 Chiba Bank i.e., Chiba Bank and Air Lease go up and down completely randomly.
Pair Corralation between Chiba Bank and Air Lease
If you would invest 4,834 in Air Lease on September 13, 2024 and sell it today you would earn a total of 177.00 from holding Air Lease or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiba Bank Ltd vs. Air Lease
Performance |
| Timeline |
| Chiba Bank |
| Air Lease |
Chiba Bank and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and Air Lease
The main advantage of trading using opposite Chiba Bank and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank 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.| Chiba Bank vs. First Hawaiian | Chiba Bank vs. Central Pacific Financial | Chiba Bank vs. Territorial Bancorp | Chiba Bank vs. Comerica |
| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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