Correlation Between FTAI Aviation and Aarons
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Aarons 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 Aviation and Aarons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAI Aviation Ltd and The Aarons, you can compare the effects of market volatilities on FTAI Aviation and Aarons 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 Aviation with a short position of Aarons. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Aarons.
Diversification Opportunities for FTAI Aviation and Aarons
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FTAI and Aarons is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and The Aarons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aarons and FTAI Aviation 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 Aviation Ltd are associated (or correlated) with Aarons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarons has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Aarons go up and down completely randomly.
Pair Corralation between FTAI Aviation and Aarons
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 | 4.76% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. The Aarons
Performance |
| Timeline |
| FTAI Aviation |
| Aarons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
FTAI Aviation and Aarons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Aarons
The main advantage of trading using opposite FTAI Aviation and Aarons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Aarons 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 Aarons will offset losses from the drop in Aarons' long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Aarons vs. Custom Truck One | Aarons vs. PROG Holdings | Aarons vs. McGrath RentCorp | Aarons vs. HE Equipment Services |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |