Correlation Between Air Lease and TAMURA P

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

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

Diversification Opportunities for Air Lease and TAMURA P

-0.87

Correlation Coefficient

Air Lease  TAMURA P

Pay attention - limited upside

The 3 months correlation between Air and TAMURA is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and TAMURA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAMURA P 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 TAMURA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAMURA P has no effect on the direction of Air Lease i.e., Air Lease and TAMURA P go up and down completely randomly.

Pair Corralation between Air Lease and TAMURA P

Assuming the 90 days trading horizon Air Lease is expected to under-perform the TAMURA P. But the stock apears to be less risky and, when comparing its historical volatility, Air Lease is 2.71 times less risky than TAMURA P. The stock trades about -0.12 of its potential returns per unit of risk. The TAMURA P is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  296.00  in TAMURA P on October 12, 2024 and sell it today you would earn a total of  28.00  from holding TAMURA P or generate 9.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Air Lease  vs.  TAMURA P

Air Lease

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Air Lease reported solid returns over the last few months and may actually be approaching a breakup point.

TAMURA P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TAMURA P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Air Lease and TAMURA P

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

The idea behind Air Lease and TAMURA P 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.