Correlation Between Firefly Aerospace and Spirit Aerosystems
Can any of the company-specific risk be diversified away by investing in both Firefly Aerospace and Spirit Aerosystems 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 Firefly Aerospace and Spirit Aerosystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firefly Aerospace Common and Spirit Aerosystems Holdings, you can compare the effects of market volatilities on Firefly Aerospace and Spirit Aerosystems 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 Firefly Aerospace with a short position of Spirit Aerosystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firefly Aerospace and Spirit Aerosystems.
Diversification Opportunities for Firefly Aerospace and Spirit Aerosystems
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firefly and Spirit is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Firefly Aerospace Common and Spirit Aerosystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirit Aerosystems and Firefly Aerospace 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 Firefly Aerospace Common are associated (or correlated) with Spirit Aerosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirit Aerosystems has no effect on the direction of Firefly Aerospace i.e., Firefly Aerospace and Spirit Aerosystems go up and down completely randomly.
Pair Corralation between Firefly Aerospace and Spirit Aerosystems
Considering the 90-day investment horizon Firefly Aerospace Common is expected to under-perform the Spirit Aerosystems. In addition to that, Firefly Aerospace is 3.6 times more volatile than Spirit Aerosystems Holdings. It trades about -0.19 of its total potential returns per unit of risk. Spirit Aerosystems Holdings is currently generating about -0.12 per unit of volatility. If you would invest 4,108 in Spirit Aerosystems Holdings on August 15, 2025 and sell it today you would lose (482.00) from holding Spirit Aerosystems Holdings or give up 11.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firefly Aerospace Common vs. Spirit Aerosystems Holdings
Performance |
| Timeline |
| Firefly Aerospace Common |
| Spirit Aerosystems |
Firefly Aerospace and Spirit Aerosystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firefly Aerospace and Spirit Aerosystems
The main advantage of trading using opposite Firefly Aerospace and Spirit Aerosystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firefly Aerospace position performs unexpectedly, Spirit Aerosystems 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 Spirit Aerosystems will offset losses from the drop in Spirit Aerosystems' long position.| Firefly Aerospace vs. VSE Corporation | Firefly Aerospace vs. Intuitive Machines | Firefly Aerospace vs. GrafTech International | Firefly Aerospace vs. AAR Corp |
| Spirit Aerosystems vs. Firefly Aerospace Common | Spirit Aerosystems vs. Plug Power | Spirit Aerosystems vs. Mercury Systems | Spirit Aerosystems vs. Hexcel |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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