Correlation Between DAX Index and Air Lease
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Air Lease, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Air Lease.
Diversification Opportunities for DAX Index and Air Lease
Weak diversification
The 3 months correlation between DAX and Air is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Air Lease go up and down completely randomly.
Pair Corralation between DAX Index and Air Lease
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Air Lease. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 2.18 times less risky than Air Lease. The index trades about -0.03 of its potential returns per unit of risk. The Air Lease is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 4,120 in Air Lease on August 28, 2024 and sell it today you would earn a total of 720.00 from holding Air Lease or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. Air Lease
Performance |
| Timeline |
DAX Index and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Air Lease
Pair trading matchups for Air Lease
Pair Trading with DAX Index and Air Lease
The main advantage of trading using opposite DAX Index and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech | Air Lease vs. SIVERS SEMICONDUCTORS AB |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |