AerCap Holdings (Germany) Volatility

R1D Stock  EUR 91.50  0.16  0.18%   
At this point, AerCap Holdings is very steady. AerCap Holdings NV secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had a 0.12% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for AerCap Holdings NV, which you can use to evaluate the volatility of the firm. Please confirm AerCap Holdings' Downside Deviation of 1.17, risk adjusted performance of 0.1082, and Mean Deviation of 0.9814 to double-check if the risk estimate we provide is consistent with the expected return of 0.16%. Key indicators related to AerCap Holdings' volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
AerCap Holdings Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of AerCap daily returns, and it is calculated using variance and standard deviation. We also use AerCap's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of AerCap Holdings volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as AerCap Holdings can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of AerCap Holdings at lower prices to lower their average cost per share. Similarly, when the prices of AerCap Holdings' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with AerCap Stock

  0.62A440 AENA SME UNSPADR110PairCorr
  0.74G9N Grupo Aeroportuario delPairCorr
  0.63G9N1 Grupo Aeroportuario delPairCorr

Moving against AerCap Stock

  0.79OB8 PT Barito PacificPairCorr
  0.77BYRA PT Bank RakyatPairCorr
  0.67NVPJ TMBThanachart Bank PublicPairCorr
  0.56TCID Telkom Indonesia TbkPairCorr
  0.5DBPD Xtrackers ShortDAXPairCorr
  0.49W7L Aeroports de ParisPairCorr
  0.37C4X Onxeo SAPairCorr
  0.32BZG2 PT Bank CentralPairCorr

AerCap Holdings Market Sensitivity And Downside Risk

AerCap Holdings' beta coefficient measures the volatility of AerCap stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents AerCap stock's returns against your selected market. In other words, AerCap Holdings's beta of 0.36 provides an investor with an approximation of how much risk AerCap Holdings stock can potentially add to one of your existing portfolios. AerCap Holdings NV has relatively low volatility with skewness of 0.57 and kurtosis of 1.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AerCap Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AerCap Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze AerCap Holdings NV Demand Trend
Check current 90 days AerCap Holdings correlation with market (Dow Jones Industrial)

AerCap Beta

    
  0.36  
AerCap standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.32  
It is essential to understand the difference between upside risk (as represented by AerCap Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of AerCap Holdings' daily returns or price. Since the actual investment returns on holding a position in aercap stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in AerCap Holdings.

AerCap Holdings NV Stock Volatility Analysis

Volatility refers to the frequency at which AerCap Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with AerCap Holdings' price changes. Investors will then calculate the volatility of AerCap Holdings' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of AerCap Holdings' volatility:

Historical Volatility

This type of stock volatility measures AerCap Holdings' fluctuations based on previous trends. It's commonly used to predict AerCap Holdings' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for AerCap Holdings' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on AerCap Holdings' to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. AerCap Holdings NV Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

AerCap Holdings Projected Return Density Against Market

Assuming the 90 days horizon AerCap Holdings has a beta of 0.3565 indicating as returns on the market go up, AerCap Holdings average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding AerCap Holdings NV will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to AerCap Holdings or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that AerCap Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a AerCap stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
AerCap Holdings NV has an alpha of 0.1399, implying that it can generate a 0.14 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
AerCap Holdings' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how aercap stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an AerCap Holdings Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

AerCap Holdings Stock Risk Measures

Assuming the 90 days horizon the coefficient of variation of AerCap Holdings is 816.27. The daily returns are distributed with a variance of 1.74 and standard deviation of 1.32. The mean deviation of AerCap Holdings NV is currently at 0.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α
Alpha over Dow Jones
0.14
β
Beta against Dow Jones0.36
σ
Overall volatility
1.32
Ir
Information ratio 0.05

AerCap Holdings Stock Return Volatility

AerCap Holdings historical daily return volatility represents how much of AerCap Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.3173% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About AerCap Holdings Volatility

Volatility is a rate at which the price of AerCap Holdings or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of AerCap Holdings may increase or decrease. In other words, similar to AerCap's beta indicator, it measures the risk of AerCap Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of AerCap Holdings fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland. AERCAP HOLDINGS operates under Airports Air Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 384 people.
AerCap Holdings' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on AerCap Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much AerCap Holdings' price varies over time.

3 ways to utilize AerCap Holdings' volatility to invest better

Higher AerCap Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of AerCap Holdings NV stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. AerCap Holdings NV stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of AerCap Holdings NV investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in AerCap Holdings' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of AerCap Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

AerCap Holdings Investment Opportunity

AerCap Holdings NV has a volatility of 1.32 and is 1.81 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of AerCap Holdings NV is lower than 11 percent of all global equities and portfolios over the last 90 days. You can use AerCap Holdings NV to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of AerCap Holdings to be traded at €96.08 in 90 days.

Average diversification

The correlation between AerCap Holdings NV and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and DJI in the same portfolio, assuming nothing else is changed.

AerCap Holdings Additional Risk Indicators

The analysis of AerCap Holdings' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in AerCap Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of AerCap Holdings stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

AerCap Holdings Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against AerCap Holdings as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. AerCap Holdings' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, AerCap Holdings' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to AerCap Holdings NV.

Complementary Tools for AerCap Stock analysis

When running AerCap Holdings' price analysis, check to measure AerCap Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AerCap Holdings is operating at the current time. Most of AerCap Holdings' value examination focuses on studying past and present price action to predict the probability of AerCap Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AerCap Holdings' price. Additionally, you may evaluate how the addition of AerCap Holdings to your portfolios can decrease your overall portfolio volatility.
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