Correlation Between Telix Pharmaceuticals and AerCap Holdings

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

By analyzing existing cross correlation between Telix Pharmaceuticals Limited and AerCap Holdings NV, you can compare the effects of market volatilities on Telix Pharmaceuticals and AerCap Holdings 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 Telix Pharmaceuticals with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telix Pharmaceuticals and AerCap Holdings.

Diversification Opportunities for Telix Pharmaceuticals and AerCap Holdings

0.43

Correlation Coefficient

Telix Pharmaceuticals  AerCap Holdings

Very weak diversification

The 3 months correlation between Telix and AerCap is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals Limited and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV and Telix Pharmaceuticals 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 Telix Pharmaceuticals Limited are associated (or correlated) with AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of Telix Pharmaceuticals i.e., Telix Pharmaceuticals and AerCap Holdings go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and AerCap Holdings

Considering the 90-day investment horizon Telix Pharmaceuticals is expected to generate 1.22 times less return on investment than AerCap Holdings. In addition to that, Telix Pharmaceuticals is 2.42 times more volatile than AerCap Holdings NV. It trades about 0.04 of its total potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.13 per unit of volatility. If you would invest  9,282  in AerCap Holdings NV on December 19, 2024 and sell it today you would earn a total of  1,022  from holding AerCap Holdings NV or generate 11.01% return on investment over 90 days.

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

Telix Pharmaceuticals Limited  vs.  AerCap Holdings NV

Telix Pharmaceuticals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Telix Pharmaceuticals Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, Telix Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

AerCap Holdings NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AerCap Holdings NV are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, AerCap Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Telix Pharmaceuticals and AerCap Holdings

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

The idea behind Telix Pharmaceuticals Limited and AerCap Holdings NV 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.