Correlation Between FTAI Infrastructure and Emeren

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

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

Diversification Opportunities for FTAI Infrastructure and Emeren

0.88

Correlation Coefficient

FTAI Infrastructure  Emeren

Very poor diversification

The 3 months correlation between FTAI and Emeren is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of FTAI Infrastructure i.e., FTAI Infrastructure and Emeren go up and down completely randomly.

Pair Corralation between FTAI Infrastructure and Emeren

Considering the 90-day investment horizon FTAI Infrastructure is expected to generate 1.12 times more return on investment than Emeren. However, FTAI Infrastructure is 1.12 times more volatile than Emeren Group. It trades about 0.18 of its potential returns per unit of risk. Emeren Group is currently generating about 0.17 per unit of risk. If you would invest  437.00  in FTAI Infrastructure on May 3, 2025 and sell it today you would earn a total of  190.00  from holding FTAI Infrastructure or generate 43.48% 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.  Emeren Group

FTAI Infrastructure

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Infrastructure are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent forward indicators, FTAI Infrastructure reported solid returns over the last few months and may actually be approaching a breakup point.

Emeren Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Emeren Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Emeren disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FTAI Infrastructure and Emeren

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

The idea behind FTAI Infrastructure and Emeren Group 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.