Correlation Between Sonida Senior and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and FTAI Aviation Ltd, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and FTAI Aviation.
Diversification Opportunities for Sonida Senior and FTAI Aviation
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sonida and FTAI is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and FTAI Aviation go up and down completely randomly.
Pair Corralation between Sonida Senior and FTAI Aviation
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 3.75 times more return on investment than FTAI Aviation. However, Sonida Senior is 3.75 times more volatile than FTAI Aviation Ltd. It trades about 0.05 of its potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.05 per unit of risk. If you would invest 1,319 in Sonida Senior Living on September 24, 2024 and sell it today you would earn a total of 1,051 from holding Sonida Senior Living or generate 79.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.13% |
Values | Daily Returns |
Sonida Senior Living vs. FTAI Aviation Ltd
Performance |
Timeline |
Sonida Senior Living |
FTAI Aviation |
Sonida Senior and FTAI Aviation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sonida Senior and FTAI Aviation
The main advantage of trading using opposite Sonida Senior and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.Sonida Senior vs. Cigna Corp | Sonida Senior vs. Definitive Healthcare Corp | Sonida Senior vs. Guardant Health | Sonida Senior vs. Laboratory of |
FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |