Correlation Between Alaska Air and Abits
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Abits 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 Abits 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 Abits Group, you can compare the effects of market volatilities on Alaska Air and Abits 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 Abits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Abits.
Diversification Opportunities for Alaska Air and Abits
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Abits is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Abits Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abits Group 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 Abits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abits Group has no effect on the direction of Alaska Air i.e., Alaska Air and Abits go up and down completely randomly.
Pair Corralation between Alaska Air and Abits
Considering the 90-day investment horizon Alaska Air Group is expected to generate 0.53 times more return on investment than Abits. However, Alaska Air Group is 1.87 times less risky than Abits. It trades about 0.06 of its potential returns per unit of risk. Abits Group is currently generating about -0.04 per unit of risk. If you would invest 7,046 in Alaska Air Group on November 28, 2024 and sell it today you would earn a total of 170.00 from holding Alaska Air Group or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Air Group vs. Abits Group
Performance |
| Timeline |
| Alaska Air Group |
| Abits Group |
Alaska Air and Abits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Abits
The main advantage of trading using opposite Alaska Air and Abits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Abits 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 Abits will offset losses from the drop in Abits' long position.| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |