Correlation Between Seaboard and FTAI Infrastructure

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

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

Diversification Opportunities for Seaboard and FTAI Infrastructure

-0.07

Correlation Coefficient

Seaboard  FTAI Infrastructure

Good diversification

The 3 months correlation between Seaboard and FTAI is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Seaboard and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Seaboard 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 Seaboard 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 Seaboard i.e., Seaboard and FTAI Infrastructure go up and down completely randomly.

Pair Corralation between Seaboard and FTAI Infrastructure

Considering the 90-day investment horizon Seaboard is expected to generate 0.36 times more return on investment than FTAI Infrastructure. However, Seaboard is 2.75 times less risky than FTAI Infrastructure. It trades about 0.33 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about 0.0 per unit of risk. If you would invest  250,697  in Seaboard on May 17, 2025 and sell it today you would earn a total of  100,303  from holding Seaboard or generate 40.01% return on investment over 90 days.

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

Seaboard  vs.  FTAI Infrastructure

Seaboard

Risk-Adjusted Performance

Solid

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

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.

Pair Trading with Seaboard and FTAI Infrastructure

The main advantage of trading using opposite Seaboard and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seaboard 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.

The idea behind Seaboard and FTAI Infrastructure 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.