Correlation Between Air Lease and GRENKELEASING

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

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

Diversification Opportunities for Air Lease and GRENKELEASING

-0.87

Correlation Coefficient

Air Lease  GRENKELEASING

Pay attention - limited upside

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

Pair Corralation between Air Lease and GRENKELEASING

Assuming the 90 days trading horizon Air Lease is expected to generate 0.72 times more return on investment than GRENKELEASING. However, Air Lease is 1.39 times less risky than GRENKELEASING. It trades about 0.03 of its potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about -0.02 per unit of risk. If you would invest  3,874  in Air Lease on October 11, 2024 and sell it today you would earn a total of  686.00  from holding Air Lease or generate 17.71% 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.  GRENKELEASING Dusseldorf

Air Lease

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 12 (%) 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.

GRENKELEASING Duss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRENKELEASING Dusseldorf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Air Lease and GRENKELEASING

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

The idea behind Air Lease and GRENKELEASING Dusseldorf 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.