Correlation Between United Airlines and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both United Airlines and Intuitive Investments 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 United Airlines and Intuitive Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and Intuitive Investments Group, you can compare the effects of market volatilities on United Airlines and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Intuitive Investments.
Diversification Opportunities for United Airlines and Intuitive Investments
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Intuitive is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of United Airlines i.e., United Airlines and Intuitive Investments go up and down completely randomly.
Pair Corralation between United Airlines and Intuitive Investments
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 1.45 times more return on investment than Intuitive Investments. However, United Airlines is 1.45 times more volatile than Intuitive Investments Group. It trades about 0.26 of its potential returns per unit of risk. Intuitive Investments Group is currently generating about -0.05 per unit of risk. If you would invest 4,677 in United Airlines Holdings on October 25, 2024 and sell it today you would earn a total of 6,273 from holding United Airlines Holdings or generate 134.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
United Airlines Holdings vs. Intuitive Investments Group
Performance |
| Timeline |
| United Airlines Holdings |
| Intuitive Investments |
United Airlines and Intuitive Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Intuitive Investments
The main advantage of trading using opposite United Airlines and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.| United Airlines vs. Grieg Seafood | United Airlines vs. AfriTin Mining | United Airlines vs. Fevertree Drinks Plc | United Airlines vs. First Majestic Silver |
| Intuitive Investments vs. Games Workshop Group | Intuitive Investments vs. Auto Trader Group | Intuitive Investments vs. Coor Service Management | Intuitive Investments vs. iShares Dow Jones |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |