Correlation Between FTAI Aviation and Galaxy Entertainment
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Galaxy Entertainment 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 Galaxy Entertainment 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 Galaxy Entertainment Group, you can compare the effects of market volatilities on FTAI Aviation and Galaxy Entertainment 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 Galaxy Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Galaxy Entertainment.
Diversification Opportunities for FTAI Aviation and Galaxy Entertainment
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FTAI and Galaxy is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Galaxy Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Entertainment 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 Galaxy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Entertainment has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Galaxy Entertainment go up and down completely randomly.
Pair Corralation between FTAI Aviation and Galaxy Entertainment
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.64 times more return on investment than Galaxy Entertainment. However, FTAI Aviation Ltd is 1.56 times less risky than Galaxy Entertainment. It trades about 0.2 of its potential returns per unit of risk. Galaxy Entertainment Group is currently generating about -0.03 per unit of risk. If you would invest 2,676 in FTAI Aviation Ltd on September 3, 2024 and sell it today you would earn a total of 112.00 from holding FTAI Aviation Ltd or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Galaxy Entertainment Group
Performance |
| Timeline |
| FTAI Aviation |
| Galaxy Entertainment |
FTAI Aviation and Galaxy Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Galaxy Entertainment
The main advantage of trading using opposite FTAI Aviation and Galaxy Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Galaxy Entertainment 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 Galaxy Entertainment will offset losses from the drop in Galaxy Entertainment's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Galaxy Entertainment vs. Las Vegas Sands | Galaxy Entertainment vs. Sands China Ltd | Galaxy Entertainment vs. Sands China | Galaxy Entertainment vs. MGM Resorts International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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