Correlation Between Eshallgo and Air Lease
Can any of the company-specific risk be diversified away by investing in both Eshallgo 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 Eshallgo and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and Air Lease, you can compare the effects of market volatilities on Eshallgo 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 Eshallgo with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Air Lease.
Diversification Opportunities for Eshallgo and Air Lease
Poor diversification
The 3 months correlation between Eshallgo and Air is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Eshallgo 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 Eshallgo Class A 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 Eshallgo i.e., Eshallgo and Air Lease go up and down completely randomly.
Pair Corralation between Eshallgo and Air Lease
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 4.71 times more return on investment than Air Lease. However, Eshallgo is 4.71 times more volatile than Air Lease. It trades about 0.38 of its potential returns per unit of risk. Air Lease is currently generating about 0.31 per unit of risk. If you would invest 218.00 in Eshallgo Class A on August 23, 2024 and sell it today you would earn a total of 182.00 from holding Eshallgo Class A or generate 83.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Air Lease
Performance |
| Timeline |
| Eshallgo Class A |
| Air Lease |
Eshallgo and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Air Lease
The main advantage of trading using opposite Eshallgo and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo 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.| Eshallgo vs. Magna International | Eshallgo vs. NioCorp Developments Ltd | Eshallgo vs. ACG Metals Limited | Eshallgo vs. Eldorado Gold Corp |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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