Correlation Between FTAI Aviation and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Aerofoam 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 Aerofoam 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 Aerofoam Metals, you can compare the effects of market volatilities on FTAI Aviation and Aerofoam 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 Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Aerofoam Metals.
Diversification Opportunities for FTAI Aviation and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals 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 Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Aerofoam Metals go up and down completely randomly.
Pair Corralation between FTAI Aviation and Aerofoam Metals
If you would invest 2,411 in FTAI Aviation Ltd on September 3, 2024 and sell it today you would earn a total of 377.00 from holding FTAI Aviation Ltd or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Aerofoam Metals
Performance |
| Timeline |
| FTAI Aviation |
| Aerofoam Metals |
FTAI Aviation and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Aerofoam Metals
The main advantage of trading using opposite FTAI Aviation and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Aerofoam 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Aerofoam Metals vs. Jutal Offshore Oil | Aerofoam Metals vs. Nasdaq Inc | Aerofoam Metals vs. Western Acquisition Ventures | Aerofoam Metals vs. Sabra Healthcare REIT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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