Correlation Between CAP LEASE and Cel AI

Can any of the company-specific risk be diversified away by investing in both CAP LEASE and Cel AI 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 CAP LEASE and Cel AI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CAP LEASE AVIATION and Cel AI PLC, you can compare the effects of market volatilities on CAP LEASE and Cel AI 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 CAP LEASE with a short position of Cel AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Cel AI.

Diversification Opportunities for CAP LEASE and Cel AI

0.0

Correlation Coefficient

CAP LEASE  Cel AI

Pay attention - limited upside

The 3 months correlation between CAP and Cel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION and Cel AI PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cel AI PLC and CAP 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 CAP LEASE AVIATION are associated (or correlated) with Cel AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cel AI PLC has no effect on the direction of CAP LEASE i.e., CAP LEASE and Cel AI go up and down completely randomly.

Pair Corralation between CAP LEASE and Cel AI

If you would invest  29.00  in Cel AI PLC on April 24, 2025 and sell it today you would lose (9.00) from holding Cel AI PLC or give up 31.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CAP LEASE AVIATION  vs.  Cel AI PLC

CAP LEASE AVIATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAP LEASE AVIATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CAP LEASE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cel AI PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cel AI PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cel AI unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CAP LEASE and Cel AI

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

The idea behind CAP LEASE AVIATION and Cel AI PLC 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.