Correlation Between Onxeo SA and Air Lease
Can any of the company-specific risk be diversified away by investing in both Onxeo SA 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 Onxeo SA and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and Air Lease, you can compare the effects of market volatilities on Onxeo SA 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 Onxeo SA with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Air Lease.
Diversification Opportunities for Onxeo SA and Air Lease
Excellent diversification
The 3 months correlation between Onxeo and Air is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and Onxeo SA 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 Onxeo SA 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 Onxeo SA i.e., Onxeo SA and Air Lease go up and down completely randomly.
Pair Corralation between Onxeo SA and Air Lease
Assuming the 90 days horizon Onxeo SA is expected to generate 6.5 times more return on investment than Air Lease. However, Onxeo SA is 6.5 times more volatile than Air Lease. It trades about 0.13 of its potential returns per unit of risk. Air Lease is currently generating about -0.11 per unit of risk. If you would invest 7.23 in Onxeo SA on October 4, 2024 and sell it today you would earn a total of 1.06 from holding Onxeo SA or generate 14.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Onxeo SA vs. Air Lease
Performance |
Timeline |
Onxeo SA |
Air Lease |
Onxeo SA and Air Lease Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Onxeo SA and Air Lease
The main advantage of trading using opposite Onxeo SA and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA 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.Onxeo SA vs. Performance Food Group | Onxeo SA vs. AUSTEVOLL SEAFOOD | Onxeo SA vs. Cal Maine Foods | Onxeo SA vs. AWILCO DRILLING PLC |
Air Lease vs. United Rentals | Air Lease vs. WillScot Mobile Mini | Air Lease vs. ALD SA | Air Lease vs. Sixt SE |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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