Correlation Between Kuka AG and Air Lease
Can any of the company-specific risk be diversified away by investing in both Kuka AG 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 Kuka AG and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuka AG ADR and Air Lease, you can compare the effects of market volatilities on Kuka AG 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 Kuka AG with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuka AG and Air Lease.
Diversification Opportunities for Kuka AG and Air Lease
Pay attention - limited upside
The 3 months correlation between Kuka and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuka AG ADR and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Kuka AG 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 Kuka AG ADR 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 Kuka AG i.e., Kuka AG and Air Lease go up and down completely randomly.
Pair Corralation between Kuka AG and Air Lease
If you would invest 4,440 in Air Lease on September 13, 2024 and sell it today you would earn a total of 571.00 from holding Air Lease or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Kuka AG ADR vs. Air Lease
Performance |
| Timeline |
| Kuka AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Air Lease |
Kuka AG and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuka AG and Air Lease
The main advantage of trading using opposite Kuka AG and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuka AG 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.| Kuka AG vs. Air Lease | Kuka AG vs. HE Equipment Services | Kuka AG vs. Global Ship Lease | Kuka AG vs. Herc Holdings |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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