Correlation Between FTAI Aviation and Chester Mining
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Chester Mining 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 Chester Mining 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 Chester Mining, you can compare the effects of market volatilities on FTAI Aviation and Chester Mining 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 Chester Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Chester Mining.
Diversification Opportunities for FTAI Aviation and Chester Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Chester is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Chester Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chester Mining 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 Chester Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chester Mining has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Chester Mining go up and down completely randomly.
Pair Corralation between FTAI Aviation and Chester Mining
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Chester Mining
Performance |
| Timeline |
| FTAI Aviation |
| Chester Mining |
FTAI Aviation and Chester Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Chester Mining
The main advantage of trading using opposite FTAI Aviation and Chester Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Chester Mining 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 Chester Mining will offset losses from the drop in Chester Mining's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Chester Mining vs. TVI Pacific | Chester Mining vs. Industrias Penoles Sab | Chester Mining vs. HUMANA INC | Chester Mining vs. SCOR PK |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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