Correlation Between Air Lease and U-Haul Holding
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
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Air Lease vs. U Haul Holding
Performance |
Timeline |
Air Lease |
U Haul Holding |
Air Lease and U-Haul Holding Volatility Contrast
Predicted Return Density |
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.Air Lease vs. Alta Equipment Group | ||
Air Lease vs. McGrath RentCorp | ||
Air Lease vs. Herc Holdings | ||
Air Lease vs. HE Equipment Services |
U-Haul Holding vs. Waste Management | ||
U-Haul Holding vs. Greentown Management Holdings | ||
U-Haul Holding vs. CECO Environmental Corp | ||
U-Haul Holding vs. Emerson Electric |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |