Correlation Between Hillenbrand and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Hillenbrand 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 Hillenbrand and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hillenbrand and FTAI Infrastructure, you can compare the effects of market volatilities on Hillenbrand 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 Hillenbrand with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillenbrand and FTAI Infrastructure.
Diversification Opportunities for Hillenbrand and FTAI Infrastructure
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hillenbrand and FTAI is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hillenbrand and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Hillenbrand 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 Hillenbrand 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 Hillenbrand i.e., Hillenbrand and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Hillenbrand and FTAI Infrastructure
Allowing for the 90-day total investment horizon Hillenbrand is expected to generate 1.26 times more return on investment than FTAI Infrastructure. However, Hillenbrand is 1.26 times more volatile than FTAI Infrastructure. It trades about 0.08 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.2 per unit of risk. If you would invest 3,185 in Hillenbrand on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Hillenbrand or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillenbrand vs. FTAI Infrastructure
Performance |
| Timeline |
| Hillenbrand |
| FTAI Infrastructure |
Hillenbrand and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillenbrand and FTAI Infrastructure
The main advantage of trading using opposite Hillenbrand and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillenbrand 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.| Hillenbrand vs. IDEX Corporation | Hillenbrand vs. Watts Water Technologies | Hillenbrand vs. Donaldson | Hillenbrand vs. Gorman Rupp |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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