Correlation Between Air Lease and FirstSun Capital
Can any of the company-specific risk be diversified away by investing in both Air Lease and FirstSun Capital 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 FirstSun Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and FirstSun Capital Bancorp, you can compare the effects of market volatilities on Air Lease and FirstSun Capital 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 FirstSun Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and FirstSun Capital.
Diversification Opportunities for Air Lease and FirstSun Capital
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and FirstSun is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp 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 FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of Air Lease i.e., Air Lease and FirstSun Capital go up and down completely randomly.
Pair Corralation between Air Lease and FirstSun Capital
Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.04 times more return on investment than FirstSun Capital. However, Air Lease is 23.6 times less risky than FirstSun Capital. It trades about -0.04 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.05 per unit of risk. If you would invest 6,406 in Air Lease on August 31, 2025 and sell it today you would lose (21.00) from holding Air Lease or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. FirstSun Capital Bancorp
Performance |
| Timeline |
| Air Lease |
| FirstSun Capital Bancorp |
Air Lease and FirstSun Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and FirstSun Capital
The main advantage of trading using opposite Air Lease and FirstSun Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, FirstSun Capital 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 FirstSun Capital will offset losses from the drop in FirstSun Capital's long position.| Air Lease vs. Khiron Life Sciences | Air Lease vs. Renovare Environmental | Air Lease vs. Marten Transport | Air Lease vs. Quantum Medical Transport |
| FirstSun Capital vs. Harmony Gold Mining | FirstSun Capital vs. Fredonia Mining | FirstSun Capital vs. Zijin Mining Group | FirstSun Capital vs. AG Mortgage 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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