Correlation Between MAVEN WIRELESS and United Airlines
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and United Airlines 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 MAVEN WIRELESS and United Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and United Airlines Holdings, you can compare the effects of market volatilities on MAVEN WIRELESS and United Airlines 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 MAVEN WIRELESS with a short position of United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and United Airlines.
Diversification Opportunities for MAVEN WIRELESS and United Airlines
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAVEN and United is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and United Airlines go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and United Airlines
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the United Airlines. But the stock apears to be less risky and, when comparing its historical volatility, MAVEN WIRELESS SWEDEN is 1.57 times less risky than United Airlines. The stock trades about -0.19 of its potential returns per unit of risk. The United Airlines Holdings is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 7,182 in United Airlines Holdings on August 31, 2024 and sell it today you would earn a total of 1,960 from holding United Airlines Holdings or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. United Airlines Holdings
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| United Airlines Holdings |
MAVEN WIRELESS and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and United Airlines
The main advantage of trading using opposite MAVEN WIRELESS and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. NMI Holdings |
| United Airlines vs. Southwest Airlines Co | United Airlines vs. Superior Plus Corp | United Airlines vs. NMI Holdings | United Airlines vs. Origin Agritech |
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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |