Correlation Between Uranium Energy and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Uranium Energy 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 Uranium Energy and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uranium Energy Corp and FTAI Aviation Ltd, you can compare the effects of market volatilities on Uranium Energy 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 Uranium Energy with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uranium Energy and FTAI Aviation.
Diversification Opportunities for Uranium Energy and FTAI Aviation
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uranium and FTAI is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Uranium Energy Corp and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Uranium Energy 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 Uranium Energy Corp 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 Uranium Energy i.e., Uranium Energy and FTAI Aviation go up and down completely randomly.
Pair Corralation between Uranium Energy and FTAI Aviation
Considering the 90-day investment horizon Uranium Energy Corp is expected to generate 6.32 times more return on investment than FTAI Aviation. However, Uranium Energy is 6.32 times more volatile than FTAI Aviation Ltd. It trades about 0.04 of its potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.15 per unit of risk. If you would invest 737.00 in Uranium Energy Corp on September 3, 2024 and sell it today you would earn a total of 94.00 from holding Uranium Energy Corp or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uranium Energy Corp vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Uranium Energy Corp |
| FTAI Aviation |
Uranium Energy and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uranium Energy and FTAI Aviation
The main advantage of trading using opposite Uranium Energy and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uranium Energy 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.| Uranium Energy vs. Energy Fuels | Uranium Energy vs. Denison Mines Corp | Uranium Energy vs. Ur Energy | Uranium Energy vs. Cameco Corp |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |