Correlation Between Air Lease and CAI International
Can any of the company-specific risk be diversified away by investing in both Air Lease and CAI International 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 Air Lease and CAI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and CAI International, you can compare the effects of market volatilities on Air Lease and CAI International 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 Air Lease with a short position of CAI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and CAI International.
Diversification Opportunities for Air Lease and CAI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and CAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and CAI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAI International and Air Lease 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 Air Lease are associated (or correlated) with CAI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAI International has no effect on the direction of Air Lease i.e., Air Lease and CAI International go up and down completely randomly.
Pair Corralation between Air Lease and CAI International
If you would invest 5,031 in Air Lease on January 26, 2024 and sell it today you would earn a total of 125.00 from holding Air Lease or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Air Lease vs. CAI International
Performance |
| Timeline |
| Air Lease |
| CAI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease and CAI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and CAI International
The main advantage of trading using opposite Air Lease and CAI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, CAI International 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 CAI International will offset losses from the drop in CAI International's long position.| Air Lease vs. Ryder System | Air Lease vs. Avis Budget Group | Air Lease vs. FlexShopper | Air Lease vs. Global Ship Lease |
| CAI International vs. Cumberland Pharmaceuticals | CAI International vs. Merit Medical Systems | CAI International vs. BioNTech SE | CAI International vs. Wicket Gaming AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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