Correlation Between FTAI Aviation and Horizon Space
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Horizon Space 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 Horizon Space 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 Horizon Space Acquisition, you can compare the effects of market volatilities on FTAI Aviation and Horizon Space 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 Horizon Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Horizon Space.
Diversification Opportunities for FTAI Aviation and Horizon Space
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between FTAI and Horizon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Horizon Space Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Space Acquisition 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 Horizon Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Space Acquisition has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Horizon Space go up and down completely randomly.
Pair Corralation between FTAI Aviation and Horizon Space
If you would invest 2,619 in FTAI Aviation Ltd on September 4, 2024 and sell it today you would earn a total of 141.00 from holding FTAI Aviation Ltd or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.52% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Horizon Space Acquisition
Performance |
| Timeline |
| FTAI Aviation |
| Horizon Space Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
FTAI Aviation and Horizon Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Horizon Space
The main advantage of trading using opposite FTAI Aviation and Horizon Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Horizon Space 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 Horizon Space will offset losses from the drop in Horizon Space's long position.| FTAI Aviation vs. GE Vernova LLC | FTAI Aviation vs. Playtika Holding Corp | FTAI Aviation vs. Kenon Holdings | FTAI Aviation vs. Kinetik Holdings |
| Horizon Space vs. Enersys | Horizon Space vs. Ihuman Inc | Horizon Space vs. Scholastic | Horizon Space vs. Highway Holdings Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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