Correlation Between FTAI Aviation and AVALONBAY
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By analyzing existing cross correlation between FTAI Aviation Ltd and AVALONBAY CMNTYS INC, you can compare the effects of market volatilities on FTAI Aviation and AVALONBAY 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 AVALONBAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and AVALONBAY.
Diversification Opportunities for FTAI Aviation and AVALONBAY
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FTAI and AVALONBAY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and AVALONBAY CMNTYS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVALONBAY CMNTYS INC 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 AVALONBAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVALONBAY CMNTYS INC has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and AVALONBAY go up and down completely randomly.
Pair Corralation between FTAI Aviation and AVALONBAY
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 2.61 times more return on investment than AVALONBAY. However, FTAI Aviation is 2.61 times more volatile than AVALONBAY CMNTYS INC. It trades about 0.13 of its potential returns per unit of risk. AVALONBAY CMNTYS INC is currently generating about 0.02 per unit of risk. If you would invest 2,332 in FTAI Aviation Ltd on September 2, 2024 and sell it today you would earn a total of 456.00 from holding FTAI Aviation Ltd or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. AVALONBAY CMNTYS INC
Performance |
| Timeline |
| FTAI Aviation |
| AVALONBAY CMNTYS INC |
FTAI Aviation and AVALONBAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and AVALONBAY
The main advantage of trading using opposite FTAI Aviation and AVALONBAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, AVALONBAY 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 AVALONBAY will offset losses from the drop in AVALONBAY's long position.| FTAI Aviation vs. SunOpta | FTAI Aviation vs. Grocery Outlet Holding | FTAI Aviation vs. SNDL Inc | FTAI Aviation vs. NH Foods Ltd |
| AVALONBAY vs. Molson Coors Brewing | AVALONBAY vs. Empresa Distribuidora y | AVALONBAY vs. PGE Corp | AVALONBAY vs. Vita Coco |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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