Correlation Between Textainer Group and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Textainer Group 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 Textainer Group and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Textainer Group Holdings and AerCap Holdings NV, you can compare the effects of market volatilities on Textainer Group 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 Textainer Group with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and AerCap Holdings.
Diversification Opportunities for Textainer Group and AerCap Holdings
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Textainer and AerCap is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings 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 Textainer Group 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 Textainer Group Holdings 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 Textainer Group i.e., Textainer Group and AerCap Holdings go up and down completely randomly.
Pair Corralation between Textainer Group and AerCap Holdings
If you would invest 9,494 in AerCap Holdings NV on September 18, 2024 and sell it today you would earn a total of 122.00 from holding AerCap Holdings NV or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Textainer Group Holdings vs. AerCap Holdings NV
Performance |
| Timeline |
| Textainer Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AerCap Holdings NV |
Textainer Group and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and AerCap Holdings
The main advantage of trading using opposite Textainer Group and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group 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.| Textainer Group vs. Ryder System | Textainer Group vs. Triton International Limited | Textainer Group vs. Air Lease | Textainer Group vs. Herc Holdings |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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