Correlation Between Air Lease and Mingzhu Logistics

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Can any of the company-specific risk be diversified away by investing in both Air Lease and Mingzhu Logistics 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 Mingzhu Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Mingzhu Logistics Holdings, you can compare the effects of market volatilities on Air Lease and Mingzhu Logistics 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 Mingzhu Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Mingzhu Logistics.

Diversification Opportunities for Air Lease and Mingzhu Logistics

AirMingzhuDiversified AwayAirMingzhuDiversified Away100%
-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Air and Mingzhu is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Mingzhu Logistics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingzhu Logistics 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 Mingzhu Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingzhu Logistics has no effect on the direction of Air Lease i.e., Air Lease and Mingzhu Logistics go up and down completely randomly.

Pair Corralation between Air Lease and Mingzhu Logistics

Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.27 times more return on investment than Mingzhu Logistics. However, Air Lease is 3.75 times less risky than Mingzhu Logistics. It trades about 0.09 of its potential returns per unit of risk. Mingzhu Logistics Holdings is currently generating about -0.06 per unit of risk. If you would invest  4,509  in Air Lease on September 30, 2024 and sell it today you would earn a total of  381.00  from holding Air Lease or generate 8.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Air Lease  vs.  Mingzhu Logistics Holdings

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-10010203040
JavaScript chart by amCharts 3.21.15AL YGMZ
       Timeline  
Air Lease 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Air Lease may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec424446485052
Mingzhu Logistics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mingzhu Logistics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecDec0.911.11.21.31.41.51.61.7

Air Lease and Mingzhu Logistics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.89-3.66-2.43-1.210.01.222.53.795.076.35 0.050.100.15
JavaScript chart by amCharts 3.21.15AL YGMZ
       Returns  

Pair Trading with Air Lease and Mingzhu Logistics

The main advantage of trading using opposite Air Lease and Mingzhu Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Mingzhu Logistics 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 Mingzhu Logistics will offset losses from the drop in Mingzhu Logistics' long position.
The idea behind Air Lease and Mingzhu Logistics Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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