Correlation Between Falcons Beyond and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Falcons Beyond and FTAI Infrastructure 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 Falcons Beyond and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcons Beyond Global, and FTAI Infrastructure, you can compare the effects of market volatilities on Falcons Beyond and FTAI Infrastructure 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 Falcons Beyond with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcons Beyond and FTAI Infrastructure.
Diversification Opportunities for Falcons Beyond and FTAI Infrastructure
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Falcons and FTAI is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Falcons Beyond Global, and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Falcons Beyond 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 Falcons Beyond Global, are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Falcons Beyond i.e., Falcons Beyond and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Falcons Beyond and FTAI Infrastructure
Given the investment horizon of 90 days Falcons Beyond Global, is expected to under-perform the FTAI Infrastructure. In addition to that, Falcons Beyond is 1.15 times more volatile than FTAI Infrastructure. It trades about -0.04 of its total potential returns per unit of risk. FTAI Infrastructure is currently generating about 0.0 per unit of volatility. If you would invest 861.00 in FTAI Infrastructure on August 30, 2024 and sell it today you would lose (12.00) from holding FTAI Infrastructure or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcons Beyond Global, vs. FTAI Infrastructure
Performance |
| Timeline |
| Falcons Beyond Global, |
| FTAI Infrastructure |
Falcons Beyond and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcons Beyond and FTAI Infrastructure
The main advantage of trading using opposite Falcons Beyond and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcons Beyond position performs unexpectedly, FTAI Infrastructure 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 Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Falcons Beyond vs. Dine Brands Global | Falcons Beyond vs. PGE Corp | Falcons Beyond vs. Aris Water Solutions | Falcons Beyond vs. Xponential Fitness |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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