Correlation Between FTAI Aviation and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Intelligent Bio 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 Intelligent Bio 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 Intelligent Bio Solutions, you can compare the effects of market volatilities on FTAI Aviation and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Intelligent Bio.
Diversification Opportunities for FTAI Aviation and Intelligent Bio
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between FTAI and Intelligent is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Intelligent Bio go up and down completely randomly.
Pair Corralation between FTAI Aviation and Intelligent Bio
Assuming the 90 days horizon FTAI Aviation is expected to generate 19.56 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, FTAI Aviation Ltd is 16.82 times less risky than Intelligent Bio. It trades about 0.27 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 141.00 in Intelligent Bio Solutions on November 27, 2024 and sell it today you would earn a total of 82.00 from holding Intelligent Bio Solutions or generate 58.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Intelligent Bio Solutions
Performance |
| Timeline |
| FTAI Aviation |
| Intelligent Bio Solutions |
FTAI Aviation and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Intelligent Bio
The main advantage of trading using opposite FTAI Aviation and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| FTAI Aviation vs. Nyxoah | FTAI Aviation vs. Academy Sports Outdoors | FTAI Aviation vs. Mattel Inc | FTAI Aviation vs. Canlan Ice Sports |
| Intelligent Bio vs. Highway Holdings Limited | Intelligent Bio vs. Parker Hannifin | Intelligent Bio vs. PennantPark Investment | Intelligent Bio vs. Emerson Electric |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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