Correlation Between FTAI Aviation and Global Payment
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Global Payment 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 Global Payment 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 Global Payment Technologies, you can compare the effects of market volatilities on FTAI Aviation and Global Payment 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 Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Global Payment.
Diversification Opportunities for FTAI Aviation and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn 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 Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Global Payment go up and down completely randomly.
Pair Corralation between FTAI Aviation and Global Payment
If you would invest 0.01 in Global Payment Technologies on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Global Payment Technologies or generate 0.0% 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. Global Payment Technologies
Performance |
| Timeline |
| FTAI Aviation |
| Global Payment Techn |
FTAI Aviation and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Global Payment
The main advantage of trading using opposite FTAI Aviation and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment's long position.| FTAI Aviation vs. Empresa Distribuidora y | FTAI Aviation vs. United Utilities Group | FTAI Aviation vs. Treasury Wine Estates | FTAI Aviation vs. China Tontine Wines |
| Global Payment vs. Verra Mobility Corp | Global Payment vs. Deluxe | Global Payment vs. Afya | Global Payment vs. National CineMedia |
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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