Correlation Between Ayala and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Ayala 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 Ayala and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ayala and FTAI Infrastructure, you can compare the effects of market volatilities on Ayala 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 Ayala with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayala and FTAI Infrastructure.
Diversification Opportunities for Ayala and FTAI Infrastructure
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ayala and FTAI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ayala and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Ayala 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 Ayala 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 Ayala i.e., Ayala and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Ayala and FTAI Infrastructure
Assuming the 90 days horizon Ayala is expected to under-perform the FTAI Infrastructure. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ayala is 1.04 times less risky than FTAI Infrastructure. The pink sheet trades about -0.04 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 511.00 in FTAI Infrastructure on December 2, 2024 and sell it today you would earn a total of 73.00 from holding FTAI Infrastructure or generate 14.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 27.94% |
Values | Daily Returns |
Ayala vs. FTAI Infrastructure
Performance |
Timeline |
Ayala |
FTAI Infrastructure |
Ayala and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ayala and FTAI Infrastructure
The main advantage of trading using opposite Ayala and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayala 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.Ayala vs. Marimaca Copper Corp | Ayala vs. Black Mammoth Metals | Ayala vs. National Beverage Corp | Ayala vs. Copperbank Resources Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |