Correlation Between China Tontine and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both China Tontine 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 China Tontine and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and FTAI Aviation Ltd, you can compare the effects of market volatilities on China Tontine 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 China Tontine with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and FTAI Aviation.
Diversification Opportunities for China Tontine and FTAI Aviation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and FTAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and China Tontine 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 China Tontine Wines 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 China Tontine i.e., China Tontine and FTAI Aviation go up and down completely randomly.
Pair Corralation between China Tontine and FTAI Aviation
If you would invest 7.10 in China Tontine Wines on September 13, 2024 and sell it today you would earn a total of 0.00 from holding China Tontine Wines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Tontine Wines vs. FTAI Aviation Ltd
Performance |
| Timeline |
| China Tontine Wines |
| FTAI Aviation |
China Tontine and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and FTAI Aviation
The main advantage of trading using opposite China Tontine and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine 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.| China Tontine vs. Glacier Bancorp | China Tontine vs. Freedom Bank of | China Tontine vs. Cheniere Energy Partners | China Tontine vs. LithiumBank Resources Corp |
| FTAI Aviation vs. Mills Music Trust | FTAI Aviation vs. Warner Music Group | FTAI Aviation vs. Electronic Arts | FTAI Aviation vs. American Airlines Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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