Correlation Between FTAI Aviation and Mega Matrix
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Mega Matrix 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 Mega Matrix 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 Mega Matrix Corp, you can compare the effects of market volatilities on FTAI Aviation and Mega Matrix 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 Mega Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Mega Matrix.
Diversification Opportunities for FTAI Aviation and Mega Matrix
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FTAI and Mega is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Mega Matrix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Matrix Corp 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 Mega Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Matrix Corp has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Mega Matrix go up and down completely randomly.
Pair Corralation between FTAI Aviation and Mega Matrix
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.15 times more return on investment than Mega Matrix. However, FTAI Aviation Ltd is 6.72 times less risky than Mega Matrix. It trades about 0.06 of its potential returns per unit of risk. Mega Matrix Corp is currently generating about 0.01 per unit of risk. If you would invest 1,947 in FTAI Aviation Ltd on January 12, 2025 and sell it today you would earn a total of 591.00 from holding FTAI Aviation Ltd or generate 30.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Mega Matrix Corp
Performance |
| Timeline |
| FTAI Aviation |
| Mega Matrix Corp |
FTAI Aviation and Mega Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Mega Matrix
The main advantage of trading using opposite FTAI Aviation and Mega Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Mega Matrix 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 Mega Matrix will offset losses from the drop in Mega Matrix's long position.| FTAI Aviation vs. National Waste Management | FTAI Aviation vs. Glacier Media | FTAI Aviation vs. SkyCity Entertainment Group | FTAI Aviation vs. Emerson Radio |
| Mega Matrix vs. Broadstone Net Lease | Mega Matrix vs. Guangdong Investment Limited | Mega Matrix vs. Acme United | Mega Matrix vs. Weyco Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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