Correlation Between Alaska Air and Evolution Mining
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Evolution Mining 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 Evolution Mining 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 Evolution Mining Limited, you can compare the effects of market volatilities on Alaska Air and Evolution Mining 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 Evolution Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Evolution Mining.
Diversification Opportunities for Alaska Air and Evolution Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alaska and Evolution is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Evolution Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining 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 Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of Alaska Air i.e., Alaska Air and Evolution Mining go up and down completely randomly.
Pair Corralation between Alaska Air and Evolution Mining
If you would invest 272.00 in Evolution Mining Limited on September 15, 2024 and sell it today you would earn a total of 44.00 from holding Evolution Mining Limited or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Alaska Air Group vs. Evolution Mining Limited
Performance |
| Timeline |
| Alaska Air Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Evolution Mining |
Alaska Air and Evolution Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Evolution Mining
The main advantage of trading using opposite Alaska Air and Evolution Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Evolution Mining 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 Evolution Mining will offset losses from the drop in Evolution Mining's long position.| Alaska Air vs. Iridium Communications | Alaska Air vs. OFFICE DEPOT | Alaska Air vs. Cogent Communications Holdings | Alaska Air vs. Algonquin Power Utilities |
| Evolution Mining vs. Franco Nevada | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. SIVERS SEMICONDUCTORS AB | Evolution Mining vs. Norsk Hydro ASA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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