Correlation Between Alaska Air and Crown Proptech
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Crown Proptech 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 Crown Proptech 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 Crown Proptech Acquisitions, you can compare the effects of market volatilities on Alaska Air and Crown Proptech 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 Crown Proptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Crown Proptech.
Diversification Opportunities for Alaska Air and Crown Proptech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alaska and Crown is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Crown Proptech Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Proptech Acqui 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 Crown Proptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Proptech Acqui has no effect on the direction of Alaska Air i.e., Alaska Air and Crown Proptech go up and down completely randomly.
Pair Corralation between Alaska Air and Crown Proptech
If you would invest 3,995 in Alaska Air Group on September 12, 2024 and sell it today you would earn a total of 2,134 from holding Alaska Air Group or generate 53.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Alaska Air Group vs. Crown Proptech Acquisitions
Performance |
| Timeline |
| Alaska Air Group |
| Crown Proptech Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alaska Air and Crown Proptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Crown Proptech
The main advantage of trading using opposite Alaska Air and Crown Proptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Crown Proptech 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 Crown Proptech will offset losses from the drop in Crown Proptech's 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 |
| Crown Proptech vs. JD Sports Fashion | Crown Proptech vs. Playtech plc | Crown Proptech vs. Marine Products | Crown Proptech vs. BRP Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |