Correlation Between Data Modul and Air Lease
Can any of the company-specific risk be diversified away by investing in both Data Modul 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 Data Modul and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Modul AG and Air Lease, you can compare the effects of market volatilities on Data Modul 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 Data Modul with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and Air Lease.
Diversification Opportunities for Data Modul and Air Lease
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Data and Air is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Data Modul 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 Data Modul AG 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 Data Modul i.e., Data Modul and Air Lease go up and down completely randomly.
Pair Corralation between Data Modul and Air Lease
Assuming the 90 days trading horizon Data Modul is expected to generate 4.35 times less return on investment than Air Lease. In addition to that, Data Modul is 1.74 times more volatile than Air Lease. It trades about 0.01 of its total potential returns per unit of risk. Air Lease is currently generating about 0.1 per unit of volatility. If you would invest 3,643 in Air Lease on November 3, 2024 and sell it today you would earn a total of 757.00 from holding Air Lease or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Modul AG vs. Air Lease
Performance |
| Timeline |
| Data Modul AG |
| Air Lease |
Data Modul and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Modul and Air Lease
The main advantage of trading using opposite Data Modul and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Modul 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.| Data Modul vs. Infrastrutture Wireless Italiane | Data Modul vs. WillScot Mobile Mini | Data Modul vs. ecotel communication ag | Data Modul vs. Geely Automobile Holdings |
| Air Lease vs. Jacquet Metal Service | Air Lease vs. Penn National Gaming | Air Lease vs. PLAYMATES TOYS | Air Lease vs. CONTAGIOUS GAMING INC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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