AIR vs FNGD: Correlation
How closely do AAR Corp. (AIR) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) trade together? Their weekly returns over three years give a correlation of -0.25, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AIR and FNGD?
Across a 3-year window, the weekly returns of AIR and FNGD correlate at -0.25, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.08 versus -0.25 over 3 years. Stretching to 5 years gives -0.32, with an annualized covariance of -715.7 %².
Among the 10 assets we track against AIR, FNGD sits near the bottom by co-movement, at rank #8. Correlation aside, the last 12 months split them widely, with AIR ahead by 134.9 points (+79.2% versus -55.7%). Note the risk asymmetry: FNGD runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AIR vs FNGD: side by side
| AIR (AAR Corp.) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +79.2% | -55.7% |
| 5-year return | +302.1% | -99.4% |
| Volatility (ann.) | 37.3% | 75.7% |
| Beta vs S&P 500 | 1.06 | -4.54 |
| Max drawdown (3Y) | -35.7% | -97.6% |
| Market cap | $5.5B | – |
| P/E (trailing) | 28.0 | 20.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AIR | FNGD |
|---|---|---|
| 2022 | +15.0% | +52.2% |
| 2023 | +39.0% | -90.1% |
| 2024 | -1.8% | -76.6% |
| 2025 | +35.1% | -61.4% |
| 2026 | +64.2% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AIR and FNGD good diversifiers for each other?
Yes. With a correlation of -0.25, AIR and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AIR and FNGD?
Using weekly returns as of 2026-08-27: -0.25 over 3 years, with -0.08 over the last year and -0.32 over 5 years.
Is FNGD a good diversifier for AIR?
Yes. With a correlation of -0.25, AIR and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.25 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/air-vs-fngd.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: AIR correlations · FNGD correlations
