Correlation Between GreenPro Capital and Air Lease

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

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

Diversification Opportunities for GreenPro Capital and Air Lease

-0.1

Correlation Coefficient

GreenPro Capital  Air Lease

Good diversification

The 3 months correlation between GreenPro and Air is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GreenPro Capital Corp and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and GreenPro Capital 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 GreenPro Capital Corp 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 GreenPro Capital i.e., GreenPro Capital and Air Lease go up and down completely randomly.

Pair Corralation between GreenPro Capital and Air Lease

Given the investment horizon of 90 days GreenPro Capital Corp is expected to generate 3.85 times more return on investment than Air Lease. However, GreenPro Capital is 3.85 times more volatile than Air Lease. It trades about 0.01 of its potential returns per unit of risk. Air Lease is currently generating about 0.0 per unit of risk. If you would invest  106.00  in GreenPro Capital Corp on December 25, 2024 and sell it today you would lose (16.00) from holding GreenPro Capital Corp or give up 15.09% of portfolio value over 90 days.

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

GreenPro Capital Corp  vs.  Air Lease

GreenPro Capital Corp

Risk-Adjusted Performance

Weak

Over the last 90 days GreenPro Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GreenPro Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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.

Pair Trading with GreenPro Capital and Air Lease

The main advantage of trading using opposite GreenPro Capital and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPro Capital 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 GreenPro Capital Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.