Correlation Between FTAI Aviation and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Bellevue Life 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 Bellevue Life 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 Bellevue Life Sciences, you can compare the effects of market volatilities on FTAI Aviation and Bellevue Life 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 Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Bellevue Life.
Diversification Opportunities for FTAI Aviation and Bellevue Life
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FTAI and Bellevue is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Bellevue Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Life Sciences 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 Bellevue Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Life Sciences has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Bellevue Life go up and down completely randomly.
Pair Corralation between FTAI Aviation and Bellevue Life
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.38 times more return on investment than Bellevue Life. However, FTAI Aviation Ltd is 2.63 times less risky than Bellevue Life. It trades about 0.16 of its potential returns per unit of risk. Bellevue Life Sciences is currently generating about 0.03 per unit of risk. If you would invest 2,693 in FTAI Aviation Ltd on September 1, 2024 and sell it today you would earn a total of 95.00 from holding FTAI Aviation Ltd or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Bellevue Life Sciences
Performance |
| Timeline |
| FTAI Aviation |
| Bellevue Life Sciences |
FTAI Aviation and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Bellevue Life
The main advantage of trading using opposite FTAI Aviation and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Bellevue Life 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 Bellevue Life will offset losses from the drop in Bellevue Life's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Bellevue Life vs. Visa Class A | Bellevue Life vs. Diamond Hill Investment | Bellevue Life vs. Distoken Acquisition | Bellevue Life vs. Associated Capital Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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