Correlation Between Air Lease and Yayyo

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

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

Diversification Opportunities for Air Lease and Yayyo

0.0

Correlation Coefficient

Air Lease  Yayyo

Pay attention - limited upside

The 3 months correlation between Air and Yayyo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Yayyo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yayyo Inc 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 Yayyo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yayyo Inc has no effect on the direction of Air Lease i.e., Air Lease and Yayyo go up and down completely randomly.

Pair Corralation between Air Lease and Yayyo

If you would invest (100.00) in Yayyo Inc on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Yayyo Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Air Lease  vs.  Yayyo Inc

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.

Yayyo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yayyo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Yayyo is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Air Lease and Yayyo

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

The idea behind Air Lease and Yayyo Inc 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.