Correlation Between FTAI Infrastructure and Seaboard

Can any of the company-specific risk be diversified away by investing in both FTAI Infrastructure and Seaboard 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 Seaboard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FTAI Infrastructure and Seaboard, you can compare the effects of market volatilities on FTAI Infrastructure and Seaboard 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 Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Infrastructure and Seaboard.

Diversification Opportunities for FTAI Infrastructure and Seaboard

-0.65

Correlation Coefficient

FTAI Infrastructure  Seaboard

Excellent diversification

The 3 months correlation between FTAI and Seaboard is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard 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 Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and Seaboard go up and down completely randomly.

Pair Corralation between FTAI Infrastructure and Seaboard

Considering the 90-day investment horizon FTAI Infrastructure is expected to under-perform the Seaboard. In addition to that, FTAI Infrastructure is 2.48 times more volatile than Seaboard. It trades about -0.02 of its total potential returns per unit of risk. Seaboard is currently generating about 0.02 per unit of volatility. If you would invest  321,837  in Seaboard on July 30, 2025 and sell it today you would earn a total of  6,163  from holding Seaboard or generate 1.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

FTAI Infrastructure  vs.  Seaboard

FTAI Infrastructure

Risk-Adjusted Performance

Weakest

Over the last 90 days FTAI Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, FTAI Infrastructure is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Seaboard

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seaboard are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Seaboard is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FTAI Infrastructure and Seaboard

The main advantage of trading using opposite FTAI Infrastructure and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAI Infrastructure position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard's long position.

The idea behind FTAI Infrastructure and Seaboard pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.