Correlation Between FTAI Aviation and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Zijin Mining 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 Zijin Mining 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 Zijin Mining Group, you can compare the effects of market volatilities on FTAI Aviation and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Zijin Mining.
Diversification Opportunities for FTAI Aviation and Zijin Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between FTAI and Zijin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Zijin Mining go up and down completely randomly.
Pair Corralation between FTAI Aviation and Zijin Mining
Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.22 times more return on investment than Zijin Mining. However, FTAI Aviation Ltd is 4.54 times less risky than Zijin Mining. It trades about 0.17 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.02 per unit of risk. If you would invest 2,563 in FTAI Aviation Ltd on August 30, 2024 and sell it today you would earn a total of 225.00 from holding FTAI Aviation Ltd or generate 8.78% 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. Zijin Mining Group
Performance |
| Timeline |
| FTAI Aviation |
| Zijin Mining Group |
FTAI Aviation and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Zijin Mining
The main advantage of trading using opposite FTAI Aviation and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| FTAI Aviation vs. Commonwealth Bank of | FTAI Aviation vs. East Africa Metals | FTAI Aviation vs. Arrow Financial | FTAI Aviation vs. LithiumBank Resources Corp |
| Zijin Mining vs. Torex Gold Resources | Zijin Mining vs. Wesdome Gold Mines | Zijin Mining vs. Northern Star Resources | Zijin Mining vs. Regis Resources |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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