Correlation Between FTAI Aviation and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Willscot Mobile 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 Willscot Mobile 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 Willscot Mobile Mini, you can compare the effects of market volatilities on FTAI Aviation and Willscot Mobile 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 Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Willscot Mobile.
Diversification Opportunities for FTAI Aviation and Willscot Mobile
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FTAI and Willscot is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini 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 Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Willscot Mobile go up and down completely randomly.
Pair Corralation between FTAI Aviation and Willscot Mobile
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.21 times more return on investment than Willscot Mobile. However, FTAI Aviation Ltd is 4.79 times less risky than Willscot Mobile. It trades about 0.03 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about 0.0 per unit of risk. If you would invest 2,703 in FTAI Aviation Ltd on August 28, 2024 and sell it today you would earn a total of 15.00 from holding FTAI Aviation Ltd or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Willscot Mobile Mini
Performance |
| Timeline |
| FTAI Aviation |
| Willscot Mobile Mini |
FTAI Aviation and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Willscot Mobile
The main advantage of trading using opposite FTAI Aviation and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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