Correlation Between FTAI Infrastructure and National Health
Can any of the company-specific risk be diversified away by investing in both FTAI Infrastructure and National Health 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 FTAI Infrastructure and National Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAI Infrastructure and National Health Scan, you can compare the effects of market volatilities on FTAI Infrastructure and National Health 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 FTAI Infrastructure with a short position of National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Infrastructure and National Health.
Diversification Opportunities for FTAI Infrastructure and National Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FTAI and National is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and National Health Scan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Scan and FTAI Infrastructure 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 FTAI Infrastructure are associated (or correlated) with National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Scan has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and National Health go up and down completely randomly.
Pair Corralation between FTAI Infrastructure and National Health
Considering the 90-day investment horizon FTAI Infrastructure is expected to under-perform the National Health. But the stock apears to be less risky and, when comparing its historical volatility, FTAI Infrastructure is 7.17 times less risky than National Health. The stock trades about -0.11 of its potential returns per unit of risk. The National Health Scan is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.80 in National Health Scan on November 27, 2024 and sell it today you would lose (0.60) from holding National Health Scan or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
FTAI Infrastructure vs. National Health Scan
Performance |
| Timeline |
| FTAI Infrastructure |
| National Health Scan |
FTAI Infrastructure and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Infrastructure and National Health
The main advantage of trading using opposite FTAI Infrastructure and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Infrastructure position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
| National Health vs. Emergent Health Corp | National Health vs. One World Universe | National Health vs. Nextmart | National Health vs. HeadsUp Entertainment International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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