Correlation Between Lendlease Global and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Lendlease Global and FTAI Aviation 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 Lendlease Global and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendlease Global Commercial and FTAI Aviation Ltd, you can compare the effects of market volatilities on Lendlease Global and FTAI Aviation 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 Lendlease Global with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendlease Global and FTAI Aviation.
Diversification Opportunities for Lendlease Global and FTAI Aviation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendlease and FTAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendlease Global Commercial and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Lendlease Global 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 Lendlease Global Commercial are associated (or correlated) with FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of Lendlease Global i.e., Lendlease Global and FTAI Aviation go up and down completely randomly.
Pair Corralation between Lendlease Global and FTAI Aviation
If you would invest 2,670 in FTAI Aviation Ltd on August 24, 2024 and sell it today you would earn a total of 28.00 from holding FTAI Aviation Ltd or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lendlease Global Commercial vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Lendlease Global Com |
| FTAI Aviation |
Lendlease Global and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendlease Global and FTAI Aviation
The main advantage of trading using opposite Lendlease Global and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendlease Global position performs unexpectedly, FTAI Aviation 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 Aviation will offset losses from the drop in FTAI Aviation's long position.| Lendlease Global vs. Legacy Education | Lendlease Global vs. NVIDIA | Lendlease Global vs. Apple Inc | Lendlease Global vs. Microsoft |
| FTAI Aviation vs. Antero Midstream Partners | FTAI Aviation vs. BRP Inc | FTAI Aviation vs. Canlan Ice Sports | FTAI Aviation vs. Alliant Energy Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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