Correlation Between SQUIRREL MEDIA and Alaska Air
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Alaska Air 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 SQUIRREL MEDIA and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Alaska Air Group, you can compare the effects of market volatilities on SQUIRREL MEDIA and Alaska Air 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 SQUIRREL MEDIA with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Alaska Air.
Diversification Opportunities for SQUIRREL MEDIA and Alaska Air
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SQUIRREL and Alaska is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Alaska Air go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Alaska Air
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to under-perform the Alaska Air. In addition to that, SQUIRREL MEDIA is 1.03 times more volatile than Alaska Air Group. It trades about -0.04 of its total potential returns per unit of risk. Alaska Air Group is currently generating about 0.06 per unit of volatility. If you would invest 3,865 in Alaska Air Group on October 29, 2024 and sell it today you would earn a total of 2,739 from holding Alaska Air Group or generate 70.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. Alaska Air Group
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| Alaska Air Group |
SQUIRREL MEDIA and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Alaska Air
The main advantage of trading using opposite SQUIRREL MEDIA and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| SQUIRREL MEDIA vs. ULTRA CLEAN HLDGS | SQUIRREL MEDIA vs. Keck Seng Investments | SQUIRREL MEDIA vs. JLF INVESTMENT | SQUIRREL MEDIA vs. MGIC INVESTMENT |
| Alaska Air vs. GEELY AUTOMOBILE | Alaska Air vs. CARSALESCOM | Alaska Air vs. Richardson Electronics | Alaska Air vs. Commercial Vehicle Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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