Correlation Between FTAI Aviation and 47233JDK1
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By analyzing existing cross correlation between FTAI Aviation Ltd and US47233JDK16, you can compare the effects of market volatilities on FTAI Aviation and 47233JDK1 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 47233JDK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and 47233JDK1.
Diversification Opportunities for FTAI Aviation and 47233JDK1
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FTAI and 47233JDK1 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and US47233JDK16 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US47233JDK16 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 47233JDK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US47233JDK16 has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and 47233JDK1 go up and down completely randomly.
Pair Corralation between FTAI Aviation and 47233JDK1
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.5 times more return on investment than 47233JDK1. However, FTAI Aviation Ltd is 2.01 times less risky than 47233JDK1. It trades about 0.06 of its potential returns per unit of risk. US47233JDK16 is currently generating about 0.02 per unit of risk. If you would invest 2,121 in FTAI Aviation Ltd on September 3, 2024 and sell it today you would earn a total of 667.00 from holding FTAI Aviation Ltd or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 41.65% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. US47233JDK16
Performance |
| Timeline |
| FTAI Aviation |
| US47233JDK16 |
FTAI Aviation and 47233JDK1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and 47233JDK1
The main advantage of trading using opposite FTAI Aviation and 47233JDK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, 47233JDK1 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 47233JDK1 will offset losses from the drop in 47233JDK1's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| 47233JDK1 vs. Broadstone Net Lease | 47233JDK1 vs. FTAI Aviation Ltd | 47233JDK1 vs. U Haul Holding | 47233JDK1 vs. Nok Airlines Public |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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