Correlation Between Air Lease and KWG Group
Can any of the company-specific risk be diversified away by investing in both Air Lease and KWG Group 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 KWG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and KWG Group Holdings, you can compare the effects of market volatilities on Air Lease and KWG Group 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 KWG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and KWG Group.
Diversification Opportunities for Air Lease and KWG Group
Pay attention - limited upside
The 3 months correlation between Air and KWG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and KWG Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWG Group Holdings 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 KWG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWG Group Holdings has no effect on the direction of Air Lease i.e., Air Lease and KWG Group go up and down completely randomly.
Pair Corralation between Air Lease and KWG Group
If you would invest 4,267 in Air Lease on September 12, 2024 and sell it today you would earn a total of 744.00 from holding Air Lease or generate 17.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Air Lease vs. KWG Group Holdings
Performance |
Timeline |
Air Lease |
KWG Group Holdings |
Air Lease and KWG Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Lease and KWG Group
The main advantage of trading using opposite Air Lease and KWG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, KWG Group 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 KWG Group will offset losses from the drop in KWG Group's long position.Air Lease vs. McGrath RentCorp | Air Lease vs. Alta Equipment Group | Air Lease vs. Custom Truck One | Air Lease vs. GATX Corporation |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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