Correlation Between Alaska Air and STRAN PANY
Can any of the company-specific risk be diversified away by investing in both Alaska Air and STRAN PANY 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 STRAN PANY 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 STRAN PANY INC, you can compare the effects of market volatilities on Alaska Air and STRAN PANY 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 STRAN PANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and STRAN PANY.
Diversification Opportunities for Alaska Air and STRAN PANY
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alaska and STRAN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and STRAN PANY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAN PANY INC 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 STRAN PANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAN PANY INC has no effect on the direction of Alaska Air i.e., Alaska Air and STRAN PANY go up and down completely randomly.
Pair Corralation between Alaska Air and STRAN PANY
If you would invest 4,693 in Alaska Air Group on August 30, 2024 and sell it today you would earn a total of 575.00 from holding Alaska Air Group or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Alaska Air Group vs. STRAN PANY INC
Performance |
| Timeline |
| Alaska Air Group |
| STRAN PANY INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alaska Air and STRAN PANY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and STRAN PANY
The main advantage of trading using opposite Alaska Air and STRAN PANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, STRAN PANY 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 STRAN PANY will offset losses from the drop in STRAN PANY's long position.| Alaska Air vs. American Airlines Group | Alaska Air vs. Southwest Airlines | Alaska Air vs. JetBlue Airways Corp | Alaska Air vs. Frontier Group Holdings |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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