Correlation Between Boeing and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and FTAI Aviation Ltd, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and FTAI Aviation.
Diversification Opportunities for Boeing and FTAI Aviation
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boeing and FTAI is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Boeing 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 The Boeing 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 Boeing i.e., Boeing and FTAI Aviation go up and down completely randomly.
Pair Corralation between Boeing and FTAI Aviation
Allowing for the 90-day total investment horizon Boeing is expected to generate 17.93 times less return on investment than FTAI Aviation. In addition to that, Boeing is 2.12 times more volatile than FTAI Aviation Ltd. It trades about 0.0 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Boeing |
| FTAI Aviation |
Boeing and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and FTAI Aviation
The main advantage of trading using opposite Boeing and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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.| Boeing vs. ABIVAX Socit Anonyme | Boeing vs. Morningstar Unconstrained Allocation | Boeing vs. SPACE | Boeing vs. Knife River |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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