Correlation Between Air Lease and AMREP
Can any of the company-specific risk be diversified away by investing in both Air Lease and AMREP 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 AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and AMREP, you can compare the effects of market volatilities on Air Lease and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and AMREP.
Diversification Opportunities for Air Lease and AMREP
Very good diversification
The 3 months correlation between Air and AMREP is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Air Lease i.e., Air Lease and AMREP go up and down completely randomly.
Pair Corralation between Air Lease and AMREP
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.56 times more return on investment than AMREP. However, Air Lease is 1.77 times less risky than AMREP. It trades about 0.22 of its potential returns per unit of risk. AMREP is currently generating about 0.01 per unit of risk. If you would invest 4,658 in Air Lease on April 30, 2025 and sell it today you would earn a total of 1,075 from holding Air Lease or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. AMREP
Performance |
| Timeline |
| Air Lease |
| AMREP |
Air Lease and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and AMREP
The main advantage of trading using opposite Air Lease and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Air Lease vs. AerCap Holdings NV | Air Lease vs. Ryder System | Air Lease vs. Alta Equipment Group | Air Lease vs. Ametek Inc |
| AMREP vs. Alexanders | AMREP vs. American Realty Investors | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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