Correlation Between Air Lease and General Finance
Can any of the company-specific risk be diversified away by investing in both Air Lease and General Finance 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 General Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and General Finance, you can compare the effects of market volatilities on Air Lease and General Finance 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 General Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and General Finance.
Diversification Opportunities for Air Lease and General Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and General Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Finance 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 General Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Finance has no effect on the direction of Air Lease i.e., Air Lease and General Finance go up and down completely randomly.
Pair Corralation between Air Lease and General Finance
If you would invest 4,635 in Air Lease on January 19, 2024 and sell it today you would earn a total of 318.00 from holding Air Lease or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Air Lease vs. General Finance
Performance |
| Timeline |
| Air Lease |
| General Finance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air Lease and General Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and General Finance
The main advantage of trading using opposite Air Lease and General Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, General Finance 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 General Finance will offset losses from the drop in General Finance's long position.| Air Lease vs. GATX Corporation | Air Lease vs. Alta Equipment Group | Air Lease vs. Ryder System | Air Lease vs. Hertz Global Holdings |
| General Finance vs. Talis Biomedical Corp | General Finance vs. 908 Devices | General Finance vs. Pinterest | General Finance vs. Dolphin Entertainment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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