Correlation Between FTAI Aviation and Life Insurance
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Life Insurance 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 Life Insurance 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 Life Insurance, you can compare the effects of market volatilities on FTAI Aviation and Life Insurance 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 Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Life Insurance.
Diversification Opportunities for FTAI Aviation and Life Insurance
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FTAI and Life is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance 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 Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Life Insurance go up and down completely randomly.
Pair Corralation between FTAI Aviation and Life Insurance
If you would invest 1,550 in Life Insurance on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Life Insurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Life Insurance
Performance |
| Timeline |
| FTAI Aviation |
| Life Insurance |
FTAI Aviation and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Life Insurance
The main advantage of trading using opposite FTAI Aviation and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Life Insurance 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Life Insurance vs. FTAI Aviation Ltd | Life Insurance vs. Global Net Lease | Life Insurance vs. Pekin Life Insurance | Life Insurance vs. The Peoples Insurance |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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