Correlation Between FTAI Aviation and NexteGO NV
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and NexteGO NV 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 NexteGO NV 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 NexteGO NV Ordinary, you can compare the effects of market volatilities on FTAI Aviation and NexteGO NV 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 NexteGO NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and NexteGO NV.
Diversification Opportunities for FTAI Aviation and NexteGO NV
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FTAI and NexteGO is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and NexteGO NV Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexteGO NV Ordinary 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 NexteGO NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexteGO NV Ordinary has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and NexteGO NV go up and down completely randomly.
Pair Corralation between FTAI Aviation and NexteGO NV
If you would invest 0.01 in NexteGO NV Ordinary on November 3, 2024 and sell it today you would earn a total of 0.00 from holding NexteGO NV Ordinary or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. NexteGO NV Ordinary
Performance |
| Timeline |
| FTAI Aviation |
| NexteGO NV Ordinary |
FTAI Aviation and NexteGO NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and NexteGO NV
The main advantage of trading using opposite FTAI Aviation and NexteGO NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, NexteGO NV 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 NexteGO NV will offset losses from the drop in NexteGO NV's long position.| FTAI Aviation vs. Sun Country Airlines | FTAI Aviation vs. IPG Photonics | FTAI Aviation vs. Broadleaf Co | FTAI Aviation vs. Highway Holdings Limited |
| NexteGO NV vs. Adtalem Global Education | NexteGO NV vs. Deluxe | NexteGO NV vs. Analog Devices | NexteGO NV vs. ServiceNow |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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