Correlation Between Air Lease and ATOSS SOFTWARE

Can any of the company-specific risk be diversified away by investing in both Air Lease and ATOSS SOFTWARE 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 ATOSS SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Air Lease and ATOSS SOFTWARE, you can compare the effects of market volatilities on Air Lease and ATOSS SOFTWARE 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 ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and ATOSS SOFTWARE.

Diversification Opportunities for Air Lease and ATOSS SOFTWARE

0.38

Correlation Coefficient

Air Lease  ATOSS SOFTWARE

Weak diversification

The 3 months correlation between Air and ATOSS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE 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 ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of Air Lease i.e., Air Lease and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between Air Lease and ATOSS SOFTWARE

Assuming the 90 days trading horizon Air Lease is expected to generate 4.84 times less return on investment than ATOSS SOFTWARE. But when comparing it to its historical volatility, Air Lease is 1.23 times less risky than ATOSS SOFTWARE. It trades about 0.04 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  13,780  in ATOSS SOFTWARE on April 21, 2025 and sell it today you would earn a total of  620.00  from holding ATOSS SOFTWARE or generate 4.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Air Lease  vs.  ATOSS SOFTWARE

Air Lease

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Air Lease reported solid returns over the last few months and may actually be approaching a breakup point.

ATOSS SOFTWARE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATOSS SOFTWARE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ATOSS SOFTWARE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Air Lease and ATOSS SOFTWARE

The main advantage of trading using opposite Air Lease and ATOSS SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, ATOSS SOFTWARE 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 ATOSS SOFTWARE will offset losses from the drop in ATOSS SOFTWARE's long position.

The idea behind Air Lease and ATOSS SOFTWARE 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.

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.