Correlation Between Alaska Air and SANDS
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By analyzing existing cross correlation between Alaska Air Group and SANDS CHINA LTD, you can compare the effects of market volatilities on Alaska Air and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and SANDS.
Diversification Opportunities for Alaska Air and SANDS
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alaska and SANDS is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of Alaska Air i.e., Alaska Air and SANDS go up and down completely randomly.
Pair Corralation between Alaska Air and SANDS
Considering the 90-day investment horizon Alaska Air Group is expected to generate 6.38 times more return on investment than SANDS. However, Alaska Air is 6.38 times more volatile than SANDS CHINA LTD. It trades about 0.22 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about -0.19 per unit of risk. If you would invest 4,791 in Alaska Air Group on September 1, 2024 and sell it today you would earn a total of 469.00 from holding Alaska Air Group or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Alaska Air Group vs. SANDS CHINA LTD
Performance |
| Timeline |
| Alaska Air Group |
| SANDS CHINA LTD |
Alaska Air and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and SANDS
The main advantage of trading using opposite Alaska Air and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.| Alaska Air vs. Canadian Pacific Railway | Alaska Air vs. Volaris | Alaska Air vs. Werner Enterprises | Alaska Air vs. flyExclusive, |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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