Correlation Between FTAI Aviation and Visteon Corp
Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Visteon Corp 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 Aviation and Visteon Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAI Aviation Ltd and Visteon Corp, you can compare the effects of market volatilities on FTAI Aviation and Visteon Corp 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 Aviation with a short position of Visteon Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Visteon Corp.
Diversification Opportunities for FTAI Aviation and Visteon Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FTAI and Visteon is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Visteon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visteon Corp and FTAI Aviation 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 Aviation Ltd are associated (or correlated) with Visteon Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visteon Corp has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Visteon Corp go up and down completely randomly.
Pair Corralation between FTAI Aviation and Visteon Corp
Assuming the 90 days horizon FTAI Aviation is expected to generate 26.82 times less return on investment than Visteon Corp. But when comparing it to its historical volatility, FTAI Aviation Ltd is 3.15 times less risky than Visteon Corp. It trades about 0.04 of its potential returns per unit of risk. Visteon Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 8,383 in Visteon Corp on May 28, 2025 and sell it today you would earn a total of 4,367 from holding Visteon Corp or generate 52.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAI Aviation Ltd vs. Visteon Corp
Performance |
| Timeline |
| FTAI Aviation |
| Visteon Corp |
FTAI Aviation and Visteon Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAI Aviation and Visteon Corp
The main advantage of trading using opposite FTAI Aviation and Visteon Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Aviation position performs unexpectedly, Visteon Corp 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 Visteon Corp will offset losses from the drop in Visteon Corp's long position.| FTAI Aviation vs. SEI Investments | FTAI Aviation vs. Evertz Technologies Limited | FTAI Aviation vs. BioNTech SE | FTAI Aviation vs. Freedom Bank of |
| Visteon Corp vs. Autoliv | Visteon Corp vs. American Axle Manufacturing | Visteon Corp vs. BorgWarner | Visteon Corp vs. Dana Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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