Correlation Between Home Loan and Willis Lease
Can any of the company-specific risk be diversified away by investing in both Home Loan and Willis Lease 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 Home Loan and Willis Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Loan Financial and Willis Lease Finance, you can compare the effects of market volatilities on Home Loan and Willis Lease 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 Home Loan with a short position of Willis Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Loan and Willis Lease.
Diversification Opportunities for Home Loan and Willis Lease
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Willis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Home Loan Financial and Willis Lease Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willis Lease Finance and Home Loan 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 Home Loan Financial are associated (or correlated) with Willis Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willis Lease Finance has no effect on the direction of Home Loan i.e., Home Loan and Willis Lease go up and down completely randomly.
Pair Corralation between Home Loan and Willis Lease
Given the investment horizon of 90 days Home Loan Financial is expected to generate 0.19 times more return on investment than Willis Lease. However, Home Loan Financial is 5.38 times less risky than Willis Lease. It trades about 0.07 of its potential returns per unit of risk. Willis Lease Finance is currently generating about -0.15 per unit of risk. If you would invest 3,344 in Home Loan Financial on August 29, 2025 and sell it today you would earn a total of 56.00 from holding Home Loan Financial or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Loan Financial vs. Willis Lease Finance
Performance |
| Timeline |
| Home Loan Financial |
| Willis Lease Finance |
Home Loan and Willis Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Loan and Willis Lease
The main advantage of trading using opposite Home Loan and Willis Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Loan position performs unexpectedly, Willis Lease 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 Willis Lease will offset losses from the drop in Willis Lease's long position.| Home Loan vs. Merck Company | Home Loan vs. Alcoa Corp | Home Loan vs. Neuberger Berman Small | Home Loan vs. Sumitomo Corp ADR |
| Willis Lease vs. Grounded People Apparel | Willis Lease vs. Galaxy Gaming | Willis Lease vs. Alarum Technologies | Willis Lease vs. Schweiter Technologies AG |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |