Correlation Between FTAI Aviation and Argo Blockchain

Can any of the company-specific risk be diversified away by investing in both FTAI Aviation and Argo Blockchain 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 Argo Blockchain 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 Argo Blockchain plc, you can compare the effects of market volatilities on FTAI Aviation and Argo Blockchain 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 Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAI Aviation and Argo Blockchain.

Diversification Opportunities for FTAI Aviation and Argo Blockchain

-0.39

Correlation Coefficient

FTAI Aviation  Argo Blockchain

Very good diversification

The 3 months correlation between FTAI and Argo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and Argo Blockchain plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Blockchain plc 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 Argo Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Blockchain plc has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and Argo Blockchain go up and down completely randomly.

Pair Corralation between FTAI Aviation and Argo Blockchain

Assuming the 90 days horizon FTAI Aviation Ltd is expected to generate 0.1 times more return on investment than Argo Blockchain. However, FTAI Aviation Ltd is 10.0 times less risky than Argo Blockchain. It trades about 0.11 of its potential returns per unit of risk. Argo Blockchain plc is currently generating about -0.05 per unit of risk. If you would invest  2,496  in FTAI Aviation Ltd on April 30, 2025 and sell it today you would earn a total of  160.00  from holding FTAI Aviation Ltd or generate 6.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FTAI Aviation Ltd  vs.  Argo Blockchain plc

FTAI Aviation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Aviation Ltd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, FTAI Aviation may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Argo Blockchain plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argo Blockchain plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with FTAI Aviation and Argo Blockchain

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

The idea behind FTAI Aviation Ltd and Argo Blockchain plc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..