Correlation Between FlexShopper and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both FlexShopper 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 FlexShopper and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and FTAI Aviation Ltd, you can compare the effects of market volatilities on FlexShopper 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 FlexShopper with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and FTAI Aviation.
Diversification Opportunities for FlexShopper and FTAI Aviation
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FlexShopper and FTAI is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and FlexShopper 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 FlexShopper 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 FlexShopper i.e., FlexShopper and FTAI Aviation go up and down completely randomly.
Pair Corralation between FlexShopper and FTAI Aviation
Given the investment horizon of 90 days FlexShopper is expected to generate 6.01 times more return on investment than FTAI Aviation. However, FlexShopper is 6.01 times more volatile than FTAI Aviation Ltd. It trades about 0.08 of its potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.12 per unit of risk. If you would invest 157.00 in FlexShopper on August 26, 2024 and sell it today you would earn a total of 11.00 from holding FlexShopper or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShopper vs. FTAI Aviation Ltd
Performance |
| Timeline |
| FlexShopper |
| FTAI Aviation |
FlexShopper and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and FTAI Aviation
The main advantage of trading using opposite FlexShopper and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper 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.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |