Correlation Between Air Lease and Lendlease Global

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

By analyzing existing cross correlation between Air Lease and Lendlease Global Commercial, you can compare the effects of market volatilities on Air Lease and Lendlease Global 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 Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Lendlease Global.

Diversification Opportunities for Air Lease and Lendlease Global

0.0

Correlation Coefficient

Air Lease  Lendlease Global

Pay attention - limited upside

The 3 months correlation between Air and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Lendlease Global Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Global Com 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 Lendlease Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Global Com has no effect on the direction of Air Lease i.e., Air Lease and Lendlease Global go up and down completely randomly.

Pair Corralation between Air Lease and Lendlease Global

If you would invest  4,439  in Air Lease on October 25, 2024 and sell it today you would earn a total of  350.00  from holding Air Lease or generate 7.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Air Lease  vs.  Lendlease Global Commercial

Air Lease

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 6 (%) 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.

Lendlease Global Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lendlease Global Commercial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Lendlease Global is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Air Lease and Lendlease Global

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

The idea behind Air Lease and Lendlease Global Commercial 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.