Correlation Between 142339AL4 and AerCap Holdings
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By analyzing existing cross correlation between CSL 22 01 MAR 32 and AerCap Holdings NV, you can compare the effects of market volatilities on 142339AL4 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 142339AL4 with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 142339AL4 and AerCap Holdings.
Diversification Opportunities for 142339AL4 and AerCap Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 142339AL4 and AerCap is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CSL 22 01 MAR 32 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 142339AL4 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 CSL 22 01 MAR 32 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 142339AL4 i.e., 142339AL4 and AerCap Holdings go up and down completely randomly.
Pair Corralation between 142339AL4 and AerCap Holdings
Assuming the 90 days trading horizon CSL 22 01 MAR 32 is expected to under-perform the AerCap Holdings. But the bond apears to be less risky and, when comparing its historical volatility, CSL 22 01 MAR 32 is 1.62 times less risky than AerCap Holdings. The bond trades about -0.12 of its potential returns per unit of risk. The AerCap Holdings NV is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 9,567 in AerCap Holdings NV on October 25, 2024 and sell it today you would lose (78.00) from holding AerCap Holdings NV or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
CSL 22 01 MAR 32 vs. AerCap Holdings NV
Performance |
| Timeline |
| CSL 22 01 |
| AerCap Holdings NV |
142339AL4 and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 142339AL4 and AerCap Holdings
The main advantage of trading using opposite 142339AL4 and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 142339AL4 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.| 142339AL4 vs. Ecovyst | 142339AL4 vs. Chemours Co | 142339AL4 vs. Sensient Technologies | 142339AL4 vs. Balchem |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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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