Correlation Between CAP LEASE and Falcon Oil

Can any of the company-specific risk be diversified away by investing in both CAP LEASE and Falcon Oil 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 Falcon Oil 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 Falcon Oil Gas, you can compare the effects of market volatilities on CAP LEASE and Falcon Oil 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 Falcon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Falcon Oil.

Diversification Opportunities for CAP LEASE and Falcon Oil

0.0

Correlation Coefficient

CAP LEASE  Falcon Oil

Pay attention - limited upside

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

Pair Corralation between CAP LEASE and Falcon Oil

If you would invest  625.00  in Falcon Oil Gas on April 24, 2025 and sell it today you would earn a total of  35.00  from holding Falcon Oil Gas or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CAP LEASE AVIATION  vs.  Falcon Oil Gas

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.

Falcon Oil Gas

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Falcon Oil Gas are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Falcon Oil may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CAP LEASE and Falcon Oil

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

The idea behind CAP LEASE AVIATION and Falcon Oil Gas 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.