Correlation Between First Ship and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both First Ship and AerCap Holdings 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 First Ship and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and AerCap Holdings NV, you can compare the effects of market volatilities on First Ship and AerCap Holdings 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 First Ship with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and AerCap Holdings.
Diversification Opportunities for First Ship and AerCap Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and AerCap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV and First Ship 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 First Ship Lease are associated (or correlated) with AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of First Ship i.e., First Ship and AerCap Holdings go up and down completely randomly.
Pair Corralation between First Ship and AerCap Holdings
If you would invest 9,364 in AerCap Holdings NV on August 31, 2024 and sell it today you would earn a total of 545.00 from holding AerCap Holdings NV or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. AerCap Holdings NV
Performance |
| Timeline |
| First Ship Lease |
| AerCap Holdings NV |
First Ship and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and AerCap Holdings
The main advantage of trading using opposite First Ship and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, AerCap Holdings 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 AerCap Holdings will offset losses from the drop in AerCap Holdings' long position.| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. Ashtead Group plc | First Ship vs. AerCap Holdings NV |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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