Correlation Between Willis Lease and Zoomcar Holdings
Can any of the company-specific risk be diversified away by investing in both Willis Lease and Zoomcar 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 Willis Lease and Zoomcar Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willis Lease Finance and Zoomcar Holdings, you can compare the effects of market volatilities on Willis Lease and Zoomcar 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 Willis Lease with a short position of Zoomcar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willis Lease and Zoomcar Holdings.
Diversification Opportunities for Willis Lease and Zoomcar Holdings
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Willis and Zoomcar is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Willis Lease Finance and Zoomcar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomcar Holdings and Willis Lease 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 Willis Lease Finance are associated (or correlated) with Zoomcar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomcar Holdings has no effect on the direction of Willis Lease i.e., Willis Lease and Zoomcar Holdings go up and down completely randomly.
Pair Corralation between Willis Lease and Zoomcar Holdings
Given the investment horizon of 90 days Willis Lease is expected to generate 5.31 times less return on investment than Zoomcar Holdings. But when comparing it to its historical volatility, Willis Lease Finance is 8.45 times less risky than Zoomcar Holdings. It trades about 0.14 of its potential returns per unit of risk. Zoomcar Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Zoomcar Holdings on August 30, 2024 and sell it today you would lose (185.00) from holding Zoomcar Holdings or give up 26.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Willis Lease Finance vs. Zoomcar Holdings
Performance |
| Timeline |
| Willis Lease Finance |
| Zoomcar Holdings |
Willis Lease and Zoomcar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willis Lease and Zoomcar Holdings
The main advantage of trading using opposite Willis Lease and Zoomcar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willis Lease position performs unexpectedly, Zoomcar 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 Zoomcar Holdings will offset losses from the drop in Zoomcar Holdings' long position.| Willis Lease vs. Custom Truck One | Willis Lease vs. GATX Corporation | Willis Lease vs. HE Equipment Services | Willis Lease vs. Alta Equipment Group |
| Zoomcar Holdings vs. Ardelyx | Zoomcar Holdings vs. Village Super Market | Zoomcar Holdings vs. Mink Therapeutics | Zoomcar Holdings vs. Albertsons Companies |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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