Correlation Between PICKN PAY and Air Lease
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and Air Lease, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Air Lease.
Diversification Opportunities for PICKN PAY and Air Lease
Poor diversification
The 3 months correlation between PICKN and Air is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and Air Lease go up and down completely randomly.
Pair Corralation between PICKN PAY and Air Lease
Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the Air Lease. In addition to that, PICKN PAY is 1.54 times more volatile than Air Lease. It trades about -0.13 of its total potential returns per unit of risk. Air Lease is currently generating about -0.18 per unit of volatility. If you would invest 4,620 in Air Lease on October 30, 2024 and sell it today you would lose (240.00) from holding Air Lease or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Air Lease
Performance |
| Timeline |
| PICKN PAY STORES |
| Air Lease |
PICKN PAY and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Air Lease
The main advantage of trading using opposite PICKN PAY and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.| PICKN PAY vs. British American Tobacco | PICKN PAY vs. CSSC Offshore Marine | PICKN PAY vs. SEI INVESTMENTS | PICKN PAY vs. MGIC INVESTMENT |
| Air Lease vs. ADRIATIC METALS LS 013355 | Air Lease vs. 24SEVENOFFICE GROUP AB | Air Lease vs. Zijin Mining Group | Air Lease vs. MAGNUM MINING EXP |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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