Correlation Between BlueLinx Holdings and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both BlueLinx Holdings and FTAI Infrastructure 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 BlueLinx Holdings and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueLinx Holdings and FTAI Infrastructure, you can compare the effects of market volatilities on BlueLinx Holdings and FTAI Infrastructure 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 BlueLinx Holdings with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueLinx Holdings and FTAI Infrastructure.
Diversification Opportunities for BlueLinx Holdings and FTAI Infrastructure
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BlueLinx and FTAI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BlueLinx Holdings and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and BlueLinx Holdings 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 BlueLinx Holdings are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of BlueLinx Holdings i.e., BlueLinx Holdings and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between BlueLinx Holdings and FTAI Infrastructure
Considering the 90-day investment horizon BlueLinx Holdings is expected to under-perform the FTAI Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, BlueLinx Holdings is 2.02 times less risky than FTAI Infrastructure. The stock trades about -0.03 of its potential returns per unit of risk. The FTAI Infrastructure is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 667.00 in FTAI Infrastructure on July 24, 2025 and sell it today you would lose (71.00) from holding FTAI Infrastructure or give up 10.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueLinx Holdings vs. FTAI Infrastructure
Performance |
| Timeline |
| BlueLinx Holdings |
| FTAI Infrastructure |
BlueLinx Holdings and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueLinx Holdings and FTAI Infrastructure
The main advantage of trading using opposite BlueLinx Holdings and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueLinx Holdings position performs unexpectedly, FTAI Infrastructure 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 Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| BlueLinx Holdings vs. Quanex Building Products | BlueLinx Holdings vs. Compass Diversified Holdings | BlueLinx Holdings vs. Aspen Aerogels | BlueLinx Holdings vs. Cresud SACIF y |
| FTAI Infrastructure vs. Compass Diversified Holdings | FTAI Infrastructure vs. Matthews International | FTAI Infrastructure vs. Forward Air | FTAI Infrastructure vs. Cresud SACIF y |
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 CEOs Directory module to screen CEOs from public companies around the world.
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