Correlation Between BOS Better and Air Lease

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

By analyzing existing cross correlation between BOS Better Online and Air Lease, you can compare the effects of market volatilities on BOS Better and Air Lease 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 BOS Better with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Air Lease.

Diversification Opportunities for BOS Better and Air Lease

-0.32

Correlation Coefficient

BOS Better  Air Lease

Very good diversification

The 3 months correlation between BOS and Air is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and BOS Better 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 BOS Better Online are associated (or correlated) with Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of BOS Better i.e., BOS Better and Air Lease go up and down completely randomly.

Pair Corralation between BOS Better and Air Lease

Given the investment horizon of 90 days BOS Better Online is expected to generate 1.19 times more return on investment than Air Lease. However, BOS Better is 1.19 times more volatile than Air Lease. It trades about 0.05 of its potential returns per unit of risk. Air Lease is currently generating about 0.05 per unit of risk. If you would invest  275.00  in BOS Better Online on December 3, 2024 and sell it today you would earn a total of  96.00  from holding BOS Better Online or generate 34.91% return on investment over 90 days.

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

BOS Better Online  vs.  Air Lease

BOS Better Online

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BOS Better Online are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, BOS Better may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 latest unfluctuating performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with BOS Better and Air Lease

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

The idea behind BOS Better Online and Air Lease 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.