Correlation Between Seaboard and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Seaboard 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 Seaboard and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seaboard and FTAI Infrastructure, you can compare the effects of market volatilities on Seaboard 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 Seaboard with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seaboard and FTAI Infrastructure.
Diversification Opportunities for Seaboard and FTAI Infrastructure
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seaboard and FTAI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Seaboard and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Seaboard 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 Seaboard 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 Seaboard i.e., Seaboard and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Seaboard and FTAI Infrastructure
Considering the 90-day investment horizon Seaboard is expected to generate 0.25 times more return on investment than FTAI Infrastructure. However, Seaboard is 3.95 times less risky than FTAI Infrastructure. It trades about -0.12 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.25 per unit of risk. If you would invest 268,980 in Seaboard on January 11, 2025 and sell it today you would lose (11,606) from holding Seaboard or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seaboard vs. FTAI Infrastructure
Performance |
| Timeline |
| Seaboard |
| FTAI Infrastructure |
Seaboard and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seaboard and FTAI Infrastructure
The main advantage of trading using opposite Seaboard and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seaboard 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.| Seaboard vs. White Mountains Insurance | Seaboard vs. Cable One | Seaboard vs. NVR Inc | Seaboard vs. Alexanders |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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