Correlation Between FTAI Aviation and Western Sierra
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Western Sierra 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 Western Sierra 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 Western Sierra Mining, you can compare the effects of market volatilities on FTAI Aviation and Western Sierra 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 Western Sierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Western Sierra.
Diversification Opportunities for FTAI Aviation and Western Sierra
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTAI and Western is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Western Sierra Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Sierra Mining 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 Western Sierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Sierra Mining has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Western Sierra go up and down completely randomly.
Pair Corralation between FTAI Aviation and Western Sierra
Assuming the 90 days horizon FTAI Aviation is expected to generate 233.71 times less return on investment than Western Sierra. But when comparing it to its historical volatility, FTAI Aviation Ltd is 229.25 times less risky than Western Sierra. It trades about 0.14 of its potential returns per unit of risk. Western Sierra Mining is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Western Sierra Mining on September 1, 2024 and sell it today you would lose (1.82) from holding Western Sierra Mining or give up 72.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Western Sierra Mining
Performance |
| Timeline |
| FTAI Aviation |
| Western Sierra Mining |
FTAI Aviation and Western Sierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Western Sierra
The main advantage of trading using opposite FTAI Aviation and Western Sierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Western Sierra 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 Western Sierra will offset losses from the drop in Western Sierra's long position.| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
| Western Sierra vs. Green Cures Botanical | Western Sierra vs. Cann American Corp | Western Sierra vs. Rimrock Gold Corp | Western Sierra vs. Galexxy Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |