Correlation Between Upper Street and Air Lease
Can any of the company-specific risk be diversified away by investing in both Upper Street 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 Upper Street and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upper Street Marketing and Air Lease, you can compare the effects of market volatilities on Upper Street 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 Upper Street with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upper Street and Air Lease.
Diversification Opportunities for Upper Street and Air Lease
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Upper and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Upper Street Marketing and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Upper Street 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 Upper Street Marketing 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 Upper Street i.e., Upper Street and Air Lease go up and down completely randomly.
Pair Corralation between Upper Street and Air Lease
If you would invest 3,708 in Air Lease on September 2, 2024 and sell it today you would earn a total of 1,382 from holding Air Lease or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upper Street Marketing vs. Air Lease
Performance |
| Timeline |
| Upper Street Marketing |
| Air Lease |
Upper Street and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upper Street and Air Lease
The main advantage of trading using opposite Upper Street and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upper Street 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.| Upper Street vs. Brainsway | Upper Street vs. Venus Concept | Upper Street vs. Tactile Systems Technology | Upper Street vs. Icecure Medical |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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