Correlation Between FTAI Infrastructure and Harte Hanks
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FTAI Infrastructure vs. Harte Hanks
Performance |
Timeline |
FTAI Infrastructure |
Harte Hanks |
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.FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
Harte Hanks vs. FTAI Infrastructure | Harte Hanks vs. Steel Partners Holdings | Harte Hanks vs. Mammoth Energy Services | Harte Hanks vs. Seaboard |
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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