Correlation Between Canlan Ice and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and FTAI Aviation Ltd, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and FTAI Aviation.
Diversification Opportunities for Canlan Ice and FTAI Aviation
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and FTAI is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and FTAI Aviation go up and down completely randomly.
Pair Corralation between Canlan Ice and FTAI Aviation
If you would invest 2,703 in FTAI Aviation Ltd on August 28, 2024 and sell it today you would earn a total of 15.00 from holding FTAI Aviation Ltd or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canlan Ice Sports vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Canlan Ice Sports |
| FTAI Aviation |
Canlan Ice and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and FTAI Aviation
The main advantage of trading using opposite Canlan Ice and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Mind Technology | Canlan Ice vs. KVH Industries | Canlan Ice vs. Nextnav Acquisition Corp | Canlan Ice vs. Marfrig Global Foods |
| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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