Correlation Between Air Lease and U-Haul Holding

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Can any of the company-specific risk be diversified away by investing in both Air Lease and U-Haul Holding 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 U-Haul Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and U Haul Holding, you can compare the effects of market volatilities on Air Lease and U-Haul Holding 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 U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and U-Haul Holding.

Diversification Opportunities for Air Lease and U-Haul Holding

AirU-HaulDiversified AwayAirU-HaulDiversified Away100%
0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Air and U-Haul is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Air Lease i.e., Air Lease and U-Haul Holding go up and down completely randomly.

Pair Corralation between Air Lease and U-Haul Holding

Allowing for the 90-day total investment horizon Air Lease is expected to under-perform the U-Haul Holding. But the stock apears to be less risky and, when comparing its historical volatility, Air Lease is 1.05 times less risky than U-Haul Holding. The stock trades about -0.05 of its potential returns per unit of risk. The U Haul Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  6,114  in U Haul Holding on November 15, 2024 and sell it today you would earn a total of  313.00  from holding U Haul Holding or generate 5.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Air Lease  vs.  U Haul Holding

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.15AL UHAL-B
       Timeline  
Air Lease 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4546474849505152
U Haul Holding 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in U Haul Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, U-Haul Holding is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb606162636465666768

Air Lease and U-Haul Holding Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.42-1.81-1.2-0.6-0.0099170.581.181.782.38 0.080.100.120.140.160.18
JavaScript chart by amCharts 3.21.15AL UHAL-B
       Returns  

Pair Trading with Air Lease and U-Haul Holding

The main advantage of trading using opposite Air Lease and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding's long position.
The idea behind Air Lease and U Haul Holding 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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