Correlation Between Alaska Air and 552953CD1
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By analyzing existing cross correlation between Alaska Air Group and MGM Resorts International, you can compare the effects of market volatilities on Alaska Air and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and 552953CD1.
Diversification Opportunities for Alaska Air and 552953CD1
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alaska and 552953CD1 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Alaska Air i.e., Alaska Air and 552953CD1 go up and down completely randomly.
Pair Corralation between Alaska Air and 552953CD1
Considering the 90-day investment horizon Alaska Air Group is expected to under-perform the 552953CD1. In addition to that, Alaska Air is 12.62 times more volatile than MGM Resorts International. It trades about -0.13 of its total potential returns per unit of risk. MGM Resorts International is currently generating about -0.12 per unit of volatility. If you would invest 9,890 in MGM Resorts International on January 26, 2025 and sell it today you would lose (146.00) from holding MGM Resorts International or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alaska Air Group vs. MGM Resorts International
Performance |
| Timeline |
| Alaska Air Group |
| MGM Resorts International |
Alaska Air and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and 552953CD1
The main advantage of trading using opposite Alaska Air and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's 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 |
| 552953CD1 vs. Sun Life Financial | 552953CD1 vs. US Global Investors | 552953CD1 vs. Universal Insurance Holdings | 552953CD1 vs. Lincoln National |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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