Correlation Between Air Lease and Nisun International

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

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

Diversification Opportunities for Air Lease and Nisun International

0.17

Correlation Coefficient

Air Lease  Nisun International

Average diversification

The 3 months correlation between Air and Nisun is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International 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 Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Air Lease i.e., Air Lease and Nisun International go up and down completely randomly.

Pair Corralation between Air Lease and Nisun International

Allowing for the 90-day total investment horizon Air Lease is expected to under-perform the Nisun International. But the stock apears to be less risky and, when comparing its historical volatility, Air Lease is 3.13 times less risky than Nisun International. The stock trades about -0.01 of its potential returns per unit of risk. The Nisun International Enterprise is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  533.00  in Nisun International Enterprise on December 23, 2024 and sell it today you would earn a total of  198.00  from holding Nisun International Enterprise or generate 37.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Air Lease  vs.  Nisun International Enterprise

Air Lease

Risk-Adjusted Performance

Very Weak

Over the last 90 days Air Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Air Lease is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Nisun International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nisun International Enterprise are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Nisun International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Air Lease and Nisun International

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

The idea behind Air Lease and Nisun International Enterprise 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.