Correlation Between Mega Matrix and FTAI Aviation

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

By analyzing existing cross correlation between Mega Matrix Corp and FTAI Aviation Ltd, you can compare the effects of market volatilities on Mega Matrix 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 Mega Matrix with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Matrix and FTAI Aviation.

Diversification Opportunities for Mega Matrix and FTAI Aviation

-0.15

Correlation Coefficient

Mega Matrix  FTAI Aviation

Good diversification

The 3 months correlation between Mega and FTAI is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mega Matrix 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 Mega Matrix 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 Mega Matrix 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 Mega Matrix i.e., Mega Matrix and FTAI Aviation go up and down completely randomly.

Pair Corralation between Mega Matrix and FTAI Aviation

Considering the 90-day investment horizon Mega Matrix Corp is expected to under-perform the FTAI Aviation. In addition to that, Mega Matrix is 8.66 times more volatile than FTAI Aviation Ltd. It trades about -0.15 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about -0.03 per unit of volatility. If you would invest  2,620  in FTAI Aviation Ltd on December 27, 2024 and sell it today you would lose (40.00) from holding FTAI Aviation Ltd or give up 1.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mega Matrix Corp  vs.  FTAI Aviation Ltd

Mega Matrix Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mega Matrix Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

FTAI Aviation

Risk-Adjusted Performance

Very Weak

Over the last 90 days FTAI Aviation Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, FTAI Aviation is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mega Matrix and FTAI Aviation

The main advantage of trading using opposite Mega Matrix and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Matrix 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.

The idea behind Mega Matrix Corp and FTAI Aviation Ltd 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.