Correlation Between Neogen and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and FTAI Aviation Ltd, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and FTAI Aviation.
Diversification Opportunities for Neogen and FTAI Aviation
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neogen and FTAI is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Neogen 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 Neogen 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 Neogen i.e., Neogen and FTAI Aviation go up and down completely randomly.
Pair Corralation between Neogen and FTAI Aviation
Given the investment horizon of 90 days Neogen is expected to generate 4.03 times less return on investment than FTAI Aviation. In addition to that, Neogen is 2.05 times more volatile than FTAI Aviation Ltd. It trades about 0.01 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.05 per unit of volatility. If you would invest 2,121 in FTAI Aviation Ltd on August 25, 2024 and sell it today you would earn a total of 629.00 from holding FTAI Aviation Ltd or generate 29.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.12% |
| Values | Daily Returns |
Neogen vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Neogen |
| FTAI Aviation |
Neogen and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and FTAI Aviation
The main advantage of trading using opposite Neogen and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Heartbeam | Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle |
| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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 CEOs Directory module to screen CEOs from public companies around the world.
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