Correlation Between Air Lease and Freedom Bank

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

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

Diversification Opportunities for Air Lease and Freedom Bank

0.81

Correlation Coefficient

Air Lease  Freedom Bank

Very poor diversification

The 3 months correlation between Air and Freedom is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank 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 Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of Air Lease i.e., Air Lease and Freedom Bank go up and down completely randomly.

Pair Corralation between Air Lease and Freedom Bank

Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.02 times less return on investment than Freedom Bank. In addition to that, Air Lease is 1.45 times more volatile than Freedom Bank of. It trades about 0.12 of its total potential returns per unit of risk. Freedom Bank of is currently generating about 0.18 per unit of volatility. If you would invest  1,038  in Freedom Bank of on May 5, 2025 and sell it today you would earn a total of  131.00  from holding Freedom Bank of or generate 12.62% return on investment over 90 days.

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

Air Lease  vs.  Freedom Bank of

Air Lease

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Air Lease may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Freedom Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Freedom Bank of are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Freedom Bank may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Air Lease and Freedom Bank

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

The idea behind Air Lease and Freedom Bank of 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .