Correlation Between Air Lease and Triller

Can any of the company-specific risk be diversified away by investing in both Air Lease and Triller 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 Air Lease and Triller into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Air Lease and Triller Group, you can compare the effects of market volatilities on Air Lease and Triller 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 Air Lease with a short position of Triller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Triller.

Diversification Opportunities for Air Lease and Triller

-0.51

Correlation Coefficient

Air Lease  Triller

Excellent diversification

The 3 months correlation between Air and Triller is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group and Air 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 Air Lease are associated (or correlated) with Triller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triller Group has no effect on the direction of Air Lease i.e., Air Lease and Triller go up and down completely randomly.

Pair Corralation between Air Lease and Triller

Allowing for the 90-day total investment horizon Air Lease is expected to generate 21.12 times less return on investment than Triller. But when comparing it to its historical volatility, Air Lease is 7.72 times less risky than Triller. It trades about 0.03 of its potential returns per unit of risk. Triller Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Triller Group on October 7, 2024 and sell it today you would earn a total of  3.00  from holding Triller Group or generate 15.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Air Lease  vs.  Triller Group

Air Lease

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, Air Lease may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Triller Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Triller Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Triller showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Air Lease and Triller

The main advantage of trading using opposite Air Lease and Triller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Triller 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 Triller will offset losses from the drop in Triller's long position.

The idea behind Air Lease and Triller Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.