Correlation Between Air Lease and 532457BT4

Can any of the company-specific risk be diversified away by investing in both Air Lease and 532457BT4 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 532457BT4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Air Lease and ELI LILLY AND, you can compare the effects of market volatilities on Air Lease and 532457BT4 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 532457BT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and 532457BT4.

Diversification Opportunities for Air Lease and 532457BT4

-0.59

Correlation Coefficient

Air Lease  532457BT4

Excellent diversification

The 3 months correlation between Air and 532457BT4 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and ELI LILLY AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELI LILLY AND 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 532457BT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELI LILLY AND has no effect on the direction of Air Lease i.e., Air Lease and 532457BT4 go up and down completely randomly.

Pair Corralation between Air Lease and 532457BT4

Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.98 times more return on investment than 532457BT4. However, Air Lease is 1.02 times less risky than 532457BT4. It trades about 0.04 of its potential returns per unit of risk. ELI LILLY AND is currently generating about -0.01 per unit of risk. If you would invest  3,760  in Air Lease on September 24, 2024 and sell it today you would earn a total of  1,097  from holding Air Lease or generate 29.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	65.86%
Values	Daily Returns

Air Lease  vs.  ELI LILLY AND

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 fragile essential indicators, Air Lease may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ELI LILLY AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ELI LILLY AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ELI LILLY AND investors.

Pair Trading with Air Lease and 532457BT4

The main advantage of trading using opposite Air Lease and 532457BT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, 532457BT4 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 532457BT4 will offset losses from the drop in 532457BT4's long position.

The idea behind Air Lease and ELI LILLY AND 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.