Correlation Between FTAI Aviation and Paiute Oil
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Paiute Oil 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 Paiute Oil 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 Paiute Oil Mining, you can compare the effects of market volatilities on FTAI Aviation and Paiute Oil 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 Paiute Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Paiute Oil.
Diversification Opportunities for FTAI Aviation and Paiute Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Paiute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Paiute Oil Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paiute Oil Mining 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 Paiute Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paiute Oil Mining has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Paiute Oil go up and down completely randomly.
Pair Corralation between FTAI Aviation and Paiute Oil
If you would invest 2,574 in FTAI Aviation Ltd on August 31, 2024 and sell it today you would earn a total of 214.00 from holding FTAI Aviation Ltd or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Paiute Oil Mining
Performance |
| Timeline |
| FTAI Aviation |
| Paiute Oil Mining |
FTAI Aviation and Paiute Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Paiute Oil
The main advantage of trading using opposite FTAI Aviation and Paiute Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Paiute Oil 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 Paiute Oil will offset losses from the drop in Paiute Oil's long position.| FTAI Aviation vs. Commonwealth Bank of | FTAI Aviation vs. East Africa Metals | FTAI Aviation vs. Arrow Financial | FTAI Aviation vs. LithiumBank Resources Corp |
| Paiute Oil vs. Legacy Education | Paiute Oil vs. Apple Inc | Paiute Oil vs. NVIDIA | Paiute Oil vs. Microsoft |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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