Correlation Between FTAI Aviation and Neogen
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Neogen 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 Neogen 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 Neogen, you can compare the effects of market volatilities on FTAI Aviation and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Neogen.
Diversification Opportunities for FTAI Aviation and Neogen
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FTAI and Neogen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Neogen go up and down completely randomly.
Pair Corralation between FTAI Aviation and Neogen
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.35 times more return on investment than Neogen. However, FTAI Aviation Ltd is 2.9 times less risky than Neogen. It trades about 0.11 of its potential returns per unit of risk. Neogen is currently generating about 0.02 per unit of risk. If you would invest 2,703 in FTAI Aviation Ltd on August 29, 2024 and sell it today you would earn a total of 70.00 from holding FTAI Aviation Ltd or generate 2.59% 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. Neogen
Performance |
| Timeline |
| FTAI Aviation |
| Neogen |
FTAI Aviation and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Neogen
The main advantage of trading using opposite FTAI Aviation and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| FTAI Aviation vs. Volaris | FTAI Aviation vs. Playa Hotels Resorts | FTAI Aviation vs. American Airlines Group | FTAI Aviation vs. Playtika Holding Corp |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges |