Correlation Between Kontoor Brands and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Kontoor Brands 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 Kontoor Brands and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontoor Brands and FTAI Infrastructure, you can compare the effects of market volatilities on Kontoor Brands 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 Kontoor Brands with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and FTAI Infrastructure.
Diversification Opportunities for Kontoor Brands and FTAI Infrastructure
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontoor and FTAI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Kontoor Brands 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 Kontoor Brands 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 Kontoor Brands i.e., Kontoor Brands and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Kontoor Brands and FTAI Infrastructure
Considering the 90-day investment horizon Kontoor Brands is expected to under-perform the FTAI Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, Kontoor Brands is 1.58 times less risky than FTAI Infrastructure. The stock trades about -0.06 of its potential returns per unit of risk. The FTAI Infrastructure is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 448.00 in FTAI Infrastructure on May 2, 2025 and sell it today you would earn a total of 188.00 from holding FTAI Infrastructure or generate 41.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Kontoor Brands vs. FTAI Infrastructure
Performance |
| Timeline |
| Kontoor Brands |
| FTAI Infrastructure |
Kontoor Brands and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and FTAI Infrastructure
The main advantage of trading using opposite Kontoor Brands and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands 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.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
| FTAI Infrastructure vs. Compass Diversified Holdings | FTAI Infrastructure vs. Fortress Transp Infra | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Matthews International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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