Correlation Between FTAI Aviation and First Ship
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and First Ship 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 First Ship 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 First Ship Lease, you can compare the effects of market volatilities on FTAI Aviation and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and First Ship.
Diversification Opportunities for FTAI Aviation and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and First Ship go up and down completely randomly.
Pair Corralation between FTAI Aviation and First Ship
If you would invest 2,570 in FTAI Aviation Ltd on November 28, 2024 and sell it today you would earn a total of 62.00 from holding FTAI Aviation Ltd or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. First Ship Lease
Performance |
| Timeline |
| FTAI Aviation |
| First Ship Lease |
FTAI Aviation and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and First Ship
The main advantage of trading using opposite FTAI Aviation and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| FTAI Aviation vs. Teleflex Incorporated | FTAI Aviation vs. Amgen Inc | FTAI Aviation vs. National Beverage Corp | FTAI Aviation vs. Thai Beverage PCL |
| First Ship vs. Universal Display | First Ship vs. Life Time Group | First Ship vs. Insteel Industries | First Ship vs. American Environmental |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |