Correlation Between Synnex and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Synnex 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 Synnex and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex and FTAI Infrastructure, you can compare the effects of market volatilities on Synnex 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 Synnex with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex and FTAI Infrastructure.
Diversification Opportunities for Synnex and FTAI Infrastructure
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Synnex and FTAI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Synnex and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Synnex 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 Synnex 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 Synnex i.e., Synnex and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Synnex and FTAI Infrastructure
Considering the 90-day investment horizon Synnex is expected to under-perform the FTAI Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, Synnex is 1.68 times less risky than FTAI Infrastructure. The stock trades about -0.01 of its potential returns per unit of risk. The FTAI Infrastructure is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 885.00 in FTAI Infrastructure on August 27, 2024 and sell it today you would earn a total of 7.00 from holding FTAI Infrastructure or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex vs. FTAI Infrastructure
Performance |
| Timeline |
| Synnex |
| FTAI Infrastructure |
Synnex and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex and FTAI Infrastructure
The main advantage of trading using opposite Synnex and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex 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.The idea behind Synnex and FTAI Infrastructure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |