Correlation Between Alaska Air and 194162AM5
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alaska Air Group and CL 31 15 AUG 25, you can compare the effects of market volatilities on Alaska Air and 194162AM5 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 194162AM5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and 194162AM5.
Diversification Opportunities for Alaska Air and 194162AM5
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alaska and 194162AM5 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and CL 31 15 AUG 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 194162AM5 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 194162AM5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 194162AM5 has no effect on the direction of Alaska Air i.e., Alaska Air and 194162AM5 go up and down completely randomly.
Pair Corralation between Alaska Air and 194162AM5
Considering the 90-day investment horizon Alaska Air Group is expected to generate 4.96 times more return on investment than 194162AM5. However, Alaska Air is 4.96 times more volatile than CL 31 15 AUG 25. It trades about 0.27 of its potential returns per unit of risk. CL 31 15 AUG 25 is currently generating about -0.2 per unit of risk. If you would invest 4,723 in Alaska Air Group on September 5, 2024 and sell it today you would earn a total of 532.00 from holding Alaska Air Group or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Alaska Air Group vs. CL 31 15 AUG 25
Performance |
| Timeline |
| Alaska Air Group |
| 194162AM5 |
Alaska Air and 194162AM5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and 194162AM5
The main advantage of trading using opposite Alaska Air and 194162AM5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, 194162AM5 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 194162AM5 will offset losses from the drop in 194162AM5's long position.The idea behind Alaska Air Group and CL 31 15 AUG 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 194162AM5 vs. SL Green Realty | 194162AM5 vs. Hurco Companies | 194162AM5 vs. Southwest Airlines | 194162AM5 vs. Alaska Air Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |