Correlation Between FTAI Infrastructure and Solid Power
Can any of the company-specific risk be diversified away by investing in both FTAI Infrastructure and Solid Power 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 Solid Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAI Infrastructure and Solid Power, you can compare the effects of market volatilities on FTAI Infrastructure and Solid Power 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 Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Infrastructure and Solid Power.
Diversification Opportunities for FTAI Infrastructure and Solid Power
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FTAI and Solid is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power 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 Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and Solid Power go up and down completely randomly.
Pair Corralation between FTAI Infrastructure and Solid Power
Considering the 90-day investment horizon FTAI Infrastructure is expected to generate 0.65 times more return on investment than Solid Power. However, FTAI Infrastructure is 1.54 times less risky than Solid Power. It trades about 0.05 of its potential returns per unit of risk. Solid Power is currently generating about 0.02 per unit of risk. If you would invest 342.00 in FTAI Infrastructure on April 6, 2025 and sell it today you would earn a total of 298.00 from holding FTAI Infrastructure or generate 87.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Infrastructure vs. Solid Power
Performance |
| Timeline |
| FTAI Infrastructure |
| Solid Power |
FTAI Infrastructure and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Infrastructure and Solid Power
The main advantage of trading using opposite FTAI Infrastructure and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Infrastructure position performs unexpectedly, Solid Power 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 Solid Power will offset losses from the drop in Solid Power's long position.| FTAI Infrastructure vs. Abercrombie Fitch | FTAI Infrastructure vs. Kontoor Brands | FTAI Infrastructure vs. Lucid Group | FTAI Infrastructure vs. Gildan Activewear |
| Solid Power vs. BBB Foods | Solid Power vs. Contextlogic | Solid Power vs. United Utilities Group | Solid Power vs. Academy Sports Outdoors |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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