Correlation Between Ainsworth Game and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and FTAI Aviation 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 Ainsworth Game and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and FTAI Aviation Ltd, you can compare the effects of market volatilities on Ainsworth Game and FTAI Aviation 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 Ainsworth Game with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and FTAI Aviation.
Diversification Opportunities for Ainsworth Game and FTAI Aviation
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and FTAI is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Ainsworth Game 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 Ainsworth Game Technology are associated (or correlated) with FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and FTAI Aviation go up and down completely randomly.
Pair Corralation between Ainsworth Game and FTAI Aviation
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the FTAI Aviation. In addition to that, Ainsworth Game is 1.85 times more volatile than FTAI Aviation Ltd. It trades about -0.09 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.13 per unit of volatility. If you would invest 2,710 in FTAI Aviation Ltd on August 30, 2024 and sell it today you would earn a total of 78.00 from holding FTAI Aviation Ltd or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Ainsworth Game Technology |
| FTAI Aviation |
Ainsworth Game and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and FTAI Aviation
The main advantage of trading using opposite Ainsworth Game and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, FTAI Aviation 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 FTAI Aviation will offset losses from the drop in FTAI Aviation's long position.| Ainsworth Game vs. Light Wonder | Ainsworth Game vs. Nasdaq Inc | Ainsworth Game vs. Vertiv Holdings Co | Ainsworth Game vs. IONQ Inc |
| FTAI Aviation vs. Volaris | FTAI Aviation vs. Playa Hotels Resorts | FTAI Aviation vs. American Airlines Group | FTAI Aviation vs. Playtika Holding Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |