Correlation Between FTAI Infrastructure and Alpine 4

Can any of the company-specific risk be diversified away by investing in both FTAI Infrastructure and Alpine 4 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 FTAI Infrastructure and Alpine 4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FTAI Infrastructure and Alpine 4 Holdings, you can compare the effects of market volatilities on FTAI Infrastructure and Alpine 4 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 FTAI Infrastructure with a short position of Alpine 4. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Infrastructure and Alpine 4.

Diversification Opportunities for FTAI Infrastructure and Alpine 4

0.36

Correlation Coefficient

FTAI Infrastructure  Alpine 4

Weak diversification

The 3 months correlation between FTAI and Alpine is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and Alpine 4 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine 4 Holdings and FTAI Infrastructure 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 FTAI Infrastructure are associated (or correlated) with Alpine 4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine 4 Holdings has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and Alpine 4 go up and down completely randomly.

Pair Corralation between FTAI Infrastructure and Alpine 4

If you would invest  1.00  in Alpine 4 Holdings on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Alpine 4 Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

FTAI Infrastructure  vs.  Alpine 4 Holdings

FTAI Infrastructure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FTAI Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, FTAI Infrastructure is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Alpine 4 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpine 4 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with FTAI Infrastructure and Alpine 4

The main advantage of trading using opposite FTAI Infrastructure and Alpine 4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Infrastructure position performs unexpectedly, Alpine 4 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 Alpine 4 will offset losses from the drop in Alpine 4's long position.

The idea behind FTAI Infrastructure and Alpine 4 Holdings 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.