Correlation Between FTAI Aviation and Pharmacia Corp
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Pharmacia Corp 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 Pharmacia Corp 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 Pharmacia Corp, you can compare the effects of market volatilities on FTAI Aviation and Pharmacia Corp 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 Pharmacia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Pharmacia Corp.
Diversification Opportunities for FTAI Aviation and Pharmacia Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Pharmacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Pharmacia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharmacia 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 Pharmacia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharmacia Corp has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Pharmacia Corp go up and down completely randomly.
Pair Corralation between FTAI Aviation and Pharmacia Corp
If you would invest (100.00) in Pharmacia Corp on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Pharmacia Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Pharmacia Corp
Performance |
| Timeline |
| FTAI Aviation |
| Pharmacia Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FTAI Aviation and Pharmacia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Pharmacia Corp
The main advantage of trading using opposite FTAI Aviation and Pharmacia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Pharmacia Corp 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 Pharmacia Corp will offset losses from the drop in Pharmacia Corp's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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