Correlation Between Pembina Pipeline and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline and FTAI Aviation Ltd, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and FTAI Aviation.
Diversification Opportunities for Pembina Pipeline and FTAI Aviation
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembina and FTAI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Pembina Pipeline 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 Pembina Pipeline 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 Pembina Pipeline i.e., Pembina Pipeline and FTAI Aviation go up and down completely randomly.
Pair Corralation between Pembina Pipeline and FTAI Aviation
If you would invest 1,583 in Pembina Pipeline on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Pembina Pipeline or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pembina Pipeline vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Pembina Pipeline |
| FTAI Aviation |
Pembina Pipeline and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and FTAI Aviation
The main advantage of trading using opposite Pembina Pipeline and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. Ecovyst | Pembina Pipeline vs. Gildan Activewear | Pembina Pipeline vs. Skechers USA | Pembina Pipeline vs. Chemours Co |
| FTAI Aviation vs. Helmerich and Payne | FTAI Aviation vs. Pembina Pipeline | FTAI Aviation vs. Everspin Technologies | FTAI Aviation vs. Jabil Circuit |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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