Correlation Between FTAI Aviation and ACG Metals
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and ACG Metals 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 ACG Metals 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 ACG Metals Limited, you can compare the effects of market volatilities on FTAI Aviation and ACG Metals 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 ACG Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and ACG Metals.
Diversification Opportunities for FTAI Aviation and ACG Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and ACG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited 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 ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and ACG Metals go up and down completely randomly.
Pair Corralation between FTAI Aviation and ACG Metals
If you would invest 2,676 in FTAI Aviation Ltd on September 3, 2024 and sell it today you would earn a total of 112.00 from holding FTAI Aviation Ltd or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. ACG Metals Limited
Performance |
| Timeline |
| FTAI Aviation |
| ACG Metals Limited |
FTAI Aviation and ACG Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and ACG Metals
The main advantage of trading using opposite FTAI Aviation and ACG Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, ACG Metals 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 ACG Metals will offset losses from the drop in ACG Metals' long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| ACG Metals vs. ServiceNow | ACG Metals vs. Pinterest | ACG Metals vs. Wicket Gaming AB | ACG Metals vs. The9 Ltd ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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