Correlation Between Alaska Air and Century Therapeutics
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Century Therapeutics 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 Century Therapeutics 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 Century Therapeutics, you can compare the effects of market volatilities on Alaska Air and Century Therapeutics 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 Century Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Century Therapeutics.
Diversification Opportunities for Alaska Air and Century Therapeutics
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and Century is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Century Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Therapeutics 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 Century Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Therapeutics has no effect on the direction of Alaska Air i.e., Alaska Air and Century Therapeutics go up and down completely randomly.
Pair Corralation between Alaska Air and Century Therapeutics
Considering the 90-day investment horizon Alaska Air Group is expected to generate 0.53 times more return on investment than Century Therapeutics. However, Alaska Air Group is 1.89 times less risky than Century Therapeutics. It trades about 0.41 of its potential returns per unit of risk. Century Therapeutics is currently generating about -0.25 per unit of risk. If you would invest 6,475 in Alaska Air Group on November 1, 2024 and sell it today you would earn a total of 968.00 from holding Alaska Air Group or generate 14.95% 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. Century Therapeutics
Performance |
| Timeline |
| Alaska Air Group |
| Century Therapeutics |
Alaska Air and Century Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Century Therapeutics
The main advantage of trading using opposite Alaska Air and Century Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Century Therapeutics 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 Century Therapeutics will offset losses from the drop in Century Therapeutics' 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 |
| Century Therapeutics vs. Edgewise Therapeutics | Century Therapeutics vs. C4 Therapeutics | Century Therapeutics vs. Mineralys Therapeutics, Common | Century Therapeutics vs. Cullinan Oncology LLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |