Correlation Between FTAI Infrastructure and Harte Hanks

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Can any of the company-specific risk be diversified away by investing in both FTAI Infrastructure and Harte Hanks 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 Harte Hanks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAI Infrastructure and Harte Hanks, you can compare the effects of market volatilities on FTAI Infrastructure and Harte Hanks 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 Harte Hanks. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Infrastructure and Harte Hanks.

Diversification Opportunities for FTAI Infrastructure and Harte Hanks

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between FTAI and Harte is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and Harte Hanks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harte Hanks 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 Harte Hanks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harte Hanks has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and Harte Hanks go up and down completely randomly.

Pair Corralation between FTAI Infrastructure and Harte Hanks

Considering the 90-day investment horizon FTAI Infrastructure is expected to generate 1.22 times more return on investment than Harte Hanks. However, FTAI Infrastructure is 1.22 times more volatile than Harte Hanks. It trades about -0.01 of its potential returns per unit of risk. Harte Hanks is currently generating about -0.15 per unit of risk. If you would invest  882.00  in FTAI Infrastructure on August 31, 2024 and sell it today you would lose (33.00) from holding FTAI Infrastructure or give up 3.74% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

FTAI Infrastructure  vs.  Harte Hanks

 Performance 
       Timeline  
FTAI Infrastructure 

Risk-Adjusted Performance

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Weak
 
Strong
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.
Harte Hanks 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Harte Hanks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

FTAI Infrastructure and Harte Hanks Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FTAI Infrastructure and Harte Hanks

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

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