Correlation Between Alaska Air and Gentor Resources
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Gentor Resources 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 Gentor Resources 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 Gentor Resources, you can compare the effects of market volatilities on Alaska Air and Gentor Resources 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 Gentor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Gentor Resources.
Diversification Opportunities for Alaska Air and Gentor Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Gentor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Gentor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentor Resources 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 Gentor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentor Resources has no effect on the direction of Alaska Air i.e., Alaska Air and Gentor Resources go up and down completely randomly.
Pair Corralation between Alaska Air and Gentor Resources
If you would invest 6,430 in Alaska Air Group on November 3, 2024 and sell it today you would earn a total of 895.00 from holding Alaska Air Group or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alaska Air Group vs. Gentor Resources
Performance |
| Timeline |
| Alaska Air Group |
| Gentor Resources |
Alaska Air and Gentor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Gentor Resources
The main advantage of trading using opposite Alaska Air and Gentor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Gentor Resources 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 Gentor Resources will offset losses from the drop in Gentor Resources' 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 |
| Gentor Resources vs. Tyson Foods | Gentor Resources vs. Emerson Electric | Gentor Resources vs. Tradeweb Markets | Gentor Resources vs. CECO Environmental 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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