Correlation Between Alaska Air and Value
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Value 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 Value 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 Value And Income, you can compare the effects of market volatilities on Alaska Air and Value 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 Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Value.
Diversification Opportunities for Alaska Air and Value
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Value is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Value And Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value And Income 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 Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value And Income has no effect on the direction of Alaska Air i.e., Alaska Air and Value go up and down completely randomly.
Pair Corralation between Alaska Air and Value
If you would invest 5,139 in Alaska Air Group on September 13, 2024 and sell it today you would earn a total of 1,312 from holding Alaska Air Group or generate 25.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alaska Air Group vs. Value And Income
Performance |
| Timeline |
| Alaska Air Group |
| Value And Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alaska Air and Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Value
The main advantage of trading using opposite Alaska Air and Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Value 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 Value will offset losses from the drop in Value's long position.| Alaska Air vs. Samsung Electronics Co | Alaska Air vs. Samsung Electronics Co | Alaska Air vs. Hyundai Motor | Alaska Air vs. Reliance Industries Ltd |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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