Correlation Between FTAI Aviation and SANDS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and SANDS 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 SANDS 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 SANDS CHINA LTD, you can compare the effects of market volatilities on FTAI Aviation and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and SANDS.

Diversification Opportunities for FTAI Aviation and SANDS

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FTAI and SANDS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and SANDS go up and down completely randomly.

Pair Corralation between FTAI Aviation and SANDS

Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.89 times more return on investment than SANDS. However, FTAI Aviation Ltd is 1.13 times less risky than SANDS. It trades about 0.14 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about 0.03 per unit of risk. If you would invest  2,116  in FTAI Aviation Ltd on September 4, 2024 and sell it today you would earn a total of  644.00  from holding FTAI Aviation Ltd or generate 30.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy91.72%
ValuesDaily Returns

FTAI Aviation Ltd  vs.  SANDS CHINA LTD

 Performance 
       Timeline  
FTAI Aviation 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Aviation Ltd are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal forward indicators, FTAI Aviation may actually be approaching a critical reversion point that can send shares even higher in January 2025.
SANDS CHINA LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SANDS CHINA LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SANDS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FTAI Aviation and SANDS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTAI Aviation and SANDS

The main advantage of trading using opposite FTAI Aviation and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.
FTAI Aviation vs. GE Vernova LLC
FTAI Aviation vs. Playtika Holding Corp
FTAI Aviation vs. Kenon Holdings
FTAI Aviation vs. Kinetik Holdings
The idea behind FTAI Aviation Ltd and SANDS CHINA LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
SANDS vs. AEP TEX INC
SANDS vs. US BANK NATIONAL
SANDS vs. Jackson Financial
SANDS vs. Brera Holdings PLC
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY