Correlation Between Global Techs and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Global Techs and FTAI Infrastructure 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 Global Techs and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Techs and FTAI Infrastructure, you can compare the effects of market volatilities on Global Techs and FTAI Infrastructure 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 Global Techs with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Techs and FTAI Infrastructure.
Diversification Opportunities for Global Techs and FTAI Infrastructure
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and FTAI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Techs and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Global Techs 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 Global Techs are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Global Techs i.e., Global Techs and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Global Techs and FTAI Infrastructure
If you would invest 804.00 in FTAI Infrastructure on September 1, 2024 and sell it today you would earn a total of 45.00 from holding FTAI Infrastructure or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Global Techs vs. FTAI Infrastructure
Performance |
| Timeline |
| Global Techs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAI Infrastructure |
Global Techs and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Techs and FTAI Infrastructure
The main advantage of trading using opposite Global Techs and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Techs position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Global Techs vs. 1847 Holdings LLC | Global Techs vs. Alliance Recovery | Global Techs vs. Agro Capital Management | Global Techs vs. Ayala |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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