Correlation Between Alaska Air and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Creo Medical 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 Alaska Air and Creo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Creo Medical Group, you can compare the effects of market volatilities on Alaska Air and Creo Medical 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 Alaska Air with a short position of Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Creo Medical.
Diversification Opportunities for Alaska Air and Creo Medical
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Creo is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group and Alaska Air 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 Alaska Air Group are associated (or correlated) with Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Alaska Air i.e., Alaska Air and Creo Medical go up and down completely randomly.
Pair Corralation between Alaska Air and Creo Medical
Assuming the 90 days trading horizon Alaska Air Group is expected to generate 0.8 times more return on investment than Creo Medical. However, Alaska Air Group is 1.25 times less risky than Creo Medical. It trades about 0.09 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.08 per unit of risk. If you would invest 3,273 in Alaska Air Group on September 1, 2024 and sell it today you would earn a total of 1,992 from holding Alaska Air Group or generate 60.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.91% |
| Values | Daily Returns |
Alaska Air Group vs. Creo Medical Group
Performance |
| Timeline |
| Alaska Air Group |
| Creo Medical Group |
Alaska Air and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Creo Medical
The main advantage of trading using opposite Alaska Air and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Alaska Air vs. Solstad Offshore ASA | Alaska Air vs. Samsung Electronics Co | Alaska Air vs. Gaztransport et Technigaz | Alaska Air vs. European Metals Holdings |
| Creo Medical vs. Samsung Electronics Co | Creo Medical vs. Samsung Electronics Co | Creo Medical vs. Hyundai Motor | Creo Medical vs. Toyota Motor Corp |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |