Correlation Between United Airlines and Cboe UK
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By analyzing existing cross correlation between United Airlines Holdings and Cboe UK Consumer, you can compare the effects of market volatilities on United Airlines and Cboe UK 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 United Airlines with a short position of Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Cboe UK.
Diversification Opportunities for United Airlines and Cboe UK
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between United and Cboe is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer and United Airlines 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 United Airlines Holdings are associated (or correlated) with Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of United Airlines i.e., United Airlines and Cboe UK go up and down completely randomly.
Pair Corralation between United Airlines and Cboe UK
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 2.32 times more return on investment than Cboe UK. However, United Airlines is 2.32 times more volatile than Cboe UK Consumer. It trades about 0.44 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.47 per unit of risk. If you would invest 7,864 in United Airlines Holdings on September 4, 2024 and sell it today you would earn a total of 1,761 from holding United Airlines Holdings or generate 22.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. Cboe UK Consumer
Performance |
| Timeline |
United Airlines and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
United Airlines Holdings
Pair trading matchups for United Airlines
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with United Airlines and Cboe UK
The main advantage of trading using opposite United Airlines and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| United Airlines vs. Cairo Communication SpA | United Airlines vs. Silvercorp Metals | United Airlines vs. Axway Software SA | United Airlines vs. Endeavour Mining Corp |
| Cboe UK vs. Bisichi Mining PLC | Cboe UK vs. United Airlines Holdings | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Greenroc Mining PLC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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