Correlation Between Alaska Air and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both Alaska Air and SQUIRREL MEDIA 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 SQUIRREL MEDIA 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 SQUIRREL MEDIA SA, you can compare the effects of market volatilities on Alaska Air and SQUIRREL MEDIA 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 SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and SQUIRREL MEDIA.
Diversification Opportunities for Alaska Air and SQUIRREL MEDIA
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alaska and SQUIRREL is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA 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 SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of Alaska Air i.e., Alaska Air and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between Alaska Air and SQUIRREL MEDIA
Assuming the 90 days trading horizon Alaska Air is expected to generate 2.64 times less return on investment than SQUIRREL MEDIA. But when comparing it to its historical volatility, Alaska Air Group is 1.82 times less risky than SQUIRREL MEDIA. It trades about 0.17 of its potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 118.00 in SQUIRREL MEDIA SA on October 29, 2024 and sell it today you would earn a total of 16.00 from holding SQUIRREL MEDIA SA or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Air Group vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| Alaska Air Group |
| SQUIRREL MEDIA SA |
Alaska Air and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and SQUIRREL MEDIA
The main advantage of trading using opposite Alaska Air and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| Alaska Air vs. GEELY AUTOMOBILE | Alaska Air vs. CARSALESCOM | Alaska Air vs. Richardson Electronics | Alaska Air vs. Commercial Vehicle Group |
| SQUIRREL MEDIA vs. ULTRA CLEAN HLDGS | SQUIRREL MEDIA vs. Keck Seng Investments | SQUIRREL MEDIA vs. JLF INVESTMENT | SQUIRREL MEDIA vs. MGIC INVESTMENT |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |