Correlation Between Air Lease and Sirius
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By analyzing existing cross correlation between Air Lease and Sirius XM Holdings, you can compare the effects of market volatilities on Air Lease and Sirius 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 Sirius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Sirius.
Diversification Opportunities for Air Lease and Sirius
Very good diversification
The 3 months correlation between Air and Sirius is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Sirius XM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holdings 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 Sirius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holdings has no effect on the direction of Air Lease i.e., Air Lease and Sirius go up and down completely randomly.
Pair Corralation between Air Lease and Sirius
Allowing for the 90-day total investment horizon Air Lease is expected to generate 2.69 times more return on investment than Sirius. However, Air Lease is 2.69 times more volatile than Sirius XM Holdings. It trades about 0.1 of its potential returns per unit of risk. Sirius XM Holdings is currently generating about -0.03 per unit of risk. If you would invest 4,480 in Air Lease on September 25, 2024 and sell it today you would earn a total of 441.00 from holding Air Lease or generate 9.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.31% |
Values | Daily Returns |
Air Lease vs. Sirius XM Holdings
Performance |
Timeline |
Air Lease |
Sirius XM Holdings |
Air Lease and Sirius Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Lease and Sirius
The main advantage of trading using opposite Air Lease and Sirius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Sirius 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 Sirius will offset losses from the drop in Sirius' long position.Air Lease vs. PROG Holdings | Air Lease vs. McGrath RentCorp | Air Lease vs. GATX Corporation | Air Lease vs. Alta Equipment Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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