Correlation Between FTAI Aviation and HydroGraph Clean

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

Diversification Opportunities for FTAI Aviation and HydroGraph Clean

0.77

Correlation Coefficient

FTAI Aviation  HydroGraph Clean

Poor diversification

The 3 months correlation between FTAI and HydroGraph is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Aviation Ltd and HydroGraph Clean Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HydroGraph Clean Power 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 HydroGraph Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HydroGraph Clean Power has no effect on the direction of FTAI Aviation i.e., FTAI Aviation and HydroGraph Clean go up and down completely randomly.

Pair Corralation between FTAI Aviation and HydroGraph Clean

Assuming the 90 days horizon FTAI Aviation is expected to generate 228.44 times less return on investment than HydroGraph Clean. But when comparing it to its historical volatility, FTAI Aviation Ltd is 23.51 times less risky than HydroGraph Clean. It trades about 0.03 of its potential returns per unit of risk. HydroGraph Clean Power is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  18.00  in HydroGraph Clean Power on July 1, 2025 and sell it today you would earn a total of  160.00  from holding HydroGraph Clean Power or generate 888.89% return on investment over 90 days.

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

FTAI Aviation Ltd  vs.  HydroGraph Clean Power

FTAI Aviation

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Aviation Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, FTAI Aviation is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

HydroGraph Clean Power

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in HydroGraph Clean Power are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, HydroGraph Clean reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FTAI Aviation and HydroGraph Clean

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

The idea behind FTAI Aviation Ltd and HydroGraph Clean Power 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.