Correlation Between FTAI Aviation and Citi Trends
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Citi Trends 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 Citi Trends 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 Citi Trends, you can compare the effects of market volatilities on FTAI Aviation and Citi Trends 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 Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Citi Trends.
Diversification Opportunities for FTAI Aviation and Citi Trends
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FTAI and Citi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends 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 Citi Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citi Trends has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Citi Trends go up and down completely randomly.
Pair Corralation between FTAI Aviation and Citi Trends
Assuming the 90 days horizon FTAI Aviation is expected to generate 132.17 times less return on investment than Citi Trends. But when comparing it to its historical volatility, FTAI Aviation Ltd is 3.77 times less risky than Citi Trends. It trades about 0.01 of its potential returns per unit of risk. Citi Trends is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 1,633 in Citi Trends on September 19, 2024 and sell it today you would earn a total of 982.00 from holding Citi Trends or generate 60.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Citi Trends
Performance |
| Timeline |
| FTAI Aviation |
| Citi Trends |
FTAI Aviation and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Citi Trends
The main advantage of trading using opposite FTAI Aviation and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Citi Trends 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 Citi Trends will offset losses from the drop in Citi Trends' long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Citi Trends vs. Capri Holdings | Citi Trends vs. Movado Group | Citi Trends vs. Tapestry | Citi Trends vs. Brilliant Earth 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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