Correlation Between 532457BT4 and Air Lease

Can any of the company-specific risk be diversified away by investing in both 532457BT4 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 532457BT4 and Air Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ELI LILLY AND and Air Lease, you can compare the effects of market volatilities on 532457BT4 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 532457BT4 with a short position of Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of 532457BT4 and Air Lease.

Diversification Opportunities for 532457BT4 and Air Lease

0.15

Correlation Coefficient

532457BT4  Air Lease

Average diversification

The 3 months correlation between 532457BT4 and Air is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ELI LILLY AND and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and 532457BT4 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 ELI LILLY AND 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 532457BT4 i.e., 532457BT4 and Air Lease go up and down completely randomly.

Pair Corralation between 532457BT4 and Air Lease

Assuming the 90 days trading horizon ELI LILLY AND is expected to generate 0.51 times more return on investment than Air Lease. However, ELI LILLY AND is 1.97 times less risky than Air Lease. It trades about 0.16 of its potential returns per unit of risk. Air Lease is currently generating about 0.02 per unit of risk. If you would invest  7,875  in ELI LILLY AND on December 27, 2024 and sell it today you would earn a total of  677.00  from holding ELI LILLY AND or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.61%
Values	Daily Returns

ELI LILLY AND  vs.  Air Lease

ELI LILLY AND

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ELI LILLY AND are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 532457BT4 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Air Lease

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Air Lease is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with 532457BT4 and Air Lease

The main advantage of trading using opposite 532457BT4 and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 532457BT4 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 ELI LILLY AND 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.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.