Correlation Between RETAIL FOOD and Air Lease
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Air Lease, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Air Lease.
Diversification Opportunities for RETAIL FOOD and Air Lease
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between RETAIL and Air is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and Air Lease go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Air Lease
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Air Lease. In addition to that, RETAIL FOOD is 12.36 times more volatile than Air Lease. It trades about -0.23 of its total potential returns per unit of risk. Air Lease is currently generating about 0.11 per unit of volatility. If you would invest 4,520 in Air Lease on September 13, 2024 and sell it today you would earn a total of 180.00 from holding Air Lease or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Air Lease
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Air Lease |
RETAIL FOOD and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Air Lease
The main advantage of trading using opposite RETAIL FOOD and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc |
| Air Lease vs. United Rentals | Air Lease vs. WillScot Mobile Mini | Air Lease vs. Superior Plus Corp | 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |