Correlation Between Vestis and Willis Lease
Can any of the company-specific risk be diversified away by investing in both Vestis and Willis 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 Vestis and Willis Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and Willis Lease Finance, you can compare the effects of market volatilities on Vestis and Willis 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 Vestis with a short position of Willis Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Willis Lease.
Diversification Opportunities for Vestis and Willis Lease
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vestis and Willis is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and Willis Lease Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willis Lease Finance and Vestis 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 Vestis are associated (or correlated) with Willis Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willis Lease Finance has no effect on the direction of Vestis i.e., Vestis and Willis Lease go up and down completely randomly.
Pair Corralation between Vestis and Willis Lease
Given the investment horizon of 90 days Vestis is expected to generate 0.7 times more return on investment than Willis Lease. However, Vestis is 1.43 times less risky than Willis Lease. It trades about 0.17 of its potential returns per unit of risk. Willis Lease Finance is currently generating about 0.12 per unit of risk. If you would invest 1,399 in Vestis on August 26, 2024 and sell it today you would earn a total of 203.00 from holding Vestis or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestis vs. Willis Lease Finance
Performance |
| Timeline |
| Vestis |
| Willis Lease Finance |
Vestis and Willis Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and Willis Lease
The main advantage of trading using opposite Vestis and Willis Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis position performs unexpectedly, Willis 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 Willis Lease will offset losses from the drop in Willis Lease's long position.| Vestis vs. PROG Holdings | Vestis vs. McGrath RentCorp | Vestis vs. Mega Matrix Corp | Vestis vs. FTAI Aviation Ltd |
| Willis Lease vs. PROG Holdings | Willis Lease vs. McGrath RentCorp | Willis Lease vs. Mega Matrix Corp | Willis Lease vs. FTAI Aviation Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |