Correlation Between Alaska Air and 488401AD2
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By analyzing existing cross correlation between Alaska Air Group and KMPR 38 23 FEB 32, you can compare the effects of market volatilities on Alaska Air and 488401AD2 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 488401AD2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and 488401AD2.
Diversification Opportunities for Alaska Air and 488401AD2
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alaska and 488401AD2 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and KMPR 38 23 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMPR 38 23 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 488401AD2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMPR 38 23 has no effect on the direction of Alaska Air i.e., Alaska Air and 488401AD2 go up and down completely randomly.
Pair Corralation between Alaska Air and 488401AD2
Considering the 90-day investment horizon Alaska Air Group is expected to generate 1.51 times more return on investment than 488401AD2. However, Alaska Air is 1.51 times more volatile than KMPR 38 23 FEB 32. It trades about 0.09 of its potential returns per unit of risk. KMPR 38 23 FEB 32 is currently generating about 0.01 per unit of risk. If you would invest 4,020 in Alaska Air Group on September 14, 2024 and sell it today you would earn a total of 2,252 from holding Alaska Air Group or generate 56.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.94% |
| Values | Daily Returns |
Alaska Air Group vs. KMPR 38 23 FEB 32
Performance |
| Timeline |
| Alaska Air Group |
| KMPR 38 23 |
Alaska Air and 488401AD2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and 488401AD2
The main advantage of trading using opposite Alaska Air and 488401AD2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, 488401AD2 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 488401AD2 will offset losses from the drop in 488401AD2's long position.| Alaska Air vs. Southwest Airlines | Alaska Air vs. United Airlines Holdings | 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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