Correlation Between Alaska Air and MBH PLC
Can any of the company-specific risk be diversified away by investing in both Alaska Air and MBH PLC 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 MBH PLC 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 MBH PLC, you can compare the effects of market volatilities on Alaska Air and MBH PLC 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 MBH PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and MBH PLC.
Diversification Opportunities for Alaska Air and MBH PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alaska and MBH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and MBH PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBH PLC 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 MBH PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBH PLC has no effect on the direction of Alaska Air i.e., Alaska Air and MBH PLC go up and down completely randomly.
Pair Corralation between Alaska Air and MBH PLC
If you would invest 5,167 in Alaska Air Group on September 14, 2024 and sell it today you would earn a total of 1,175 from holding Alaska Air Group or generate 22.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alaska Air Group vs. MBH PLC
Performance |
| Timeline |
| Alaska Air Group |
| MBH PLC |
Alaska Air and MBH PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and MBH PLC
The main advantage of trading using opposite Alaska Air and MBH PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, MBH PLC 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 MBH PLC will offset losses from the drop in MBH PLC's long position.| Alaska Air vs. American Airlines Group | Alaska Air vs. Southwest Airlines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. Frontier Group Holdings |
| MBH PLC vs. EvoAir Holdings | MBH PLC vs. Alaska Air Group | MBH PLC vs. Canlan Ice Sports | MBH PLC vs. Planet Fitness |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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