Correlation Between FTAI Aviation and Scholastic
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Scholastic 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 Scholastic 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 Scholastic, you can compare the effects of market volatilities on FTAI Aviation and Scholastic 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 Scholastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Scholastic.
Diversification Opportunities for FTAI Aviation and Scholastic
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Scholastic is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Scholastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scholastic 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 Scholastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scholastic has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Scholastic go up and down completely randomly.
Pair Corralation between FTAI Aviation and Scholastic
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.23 times more return on investment than Scholastic. However, FTAI Aviation Ltd is 4.28 times less risky than Scholastic. It trades about 0.12 of its potential returns per unit of risk. Scholastic is currently generating about -0.05 per unit of risk. If you would invest 2,333 in FTAI Aviation Ltd on August 27, 2024 and sell it today you would earn a total of 417.00 from holding FTAI Aviation Ltd or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Scholastic
Performance |
| Timeline |
| FTAI Aviation |
| Scholastic |
FTAI Aviation and Scholastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Scholastic
The main advantage of trading using opposite FTAI Aviation and Scholastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Scholastic 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 Scholastic will offset losses from the drop in Scholastic's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Scholastic vs. New York Times | Scholastic vs. Gannett Co | Scholastic vs. Lee Enterprises Incorporated | Scholastic vs. Pearson PLC ADR |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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