Correlation Between BrightSpring Health and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both BrightSpring Health and JetBlue Airways 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 BrightSpring Health and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrightSpring Health Services, and JetBlue Airways Corp, you can compare the effects of market volatilities on BrightSpring Health and JetBlue Airways 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 BrightSpring Health with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightSpring Health and JetBlue Airways.
Diversification Opportunities for BrightSpring Health and JetBlue Airways
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BrightSpring and JetBlue is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BrightSpring Health Services, and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp and BrightSpring Health 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 BrightSpring Health Services, are associated (or correlated) with JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of BrightSpring Health i.e., BrightSpring Health and JetBlue Airways go up and down completely randomly.
Pair Corralation between BrightSpring Health and JetBlue Airways
Assuming the 90 days horizon BrightSpring Health Services, is expected to generate 0.79 times more return on investment than JetBlue Airways. However, BrightSpring Health Services, is 1.26 times less risky than JetBlue Airways. It trades about 0.38 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.07 per unit of risk. If you would invest 5,593 in BrightSpring Health Services, on September 1, 2024 and sell it today you would earn a total of 1,520 from holding BrightSpring Health Services, or generate 27.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BrightSpring Health Services, vs. JetBlue Airways Corp
Performance |
| Timeline |
| BrightSpring Health |
| JetBlue Airways Corp |
BrightSpring Health and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightSpring Health and JetBlue Airways
The main advantage of trading using opposite BrightSpring Health and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightSpring Health position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.| BrightSpring Health vs. Western Digital | BrightSpring Health vs. Dennys Corp | BrightSpring Health vs. Pinterest | BrightSpring Health vs. Bt Brands |
| JetBlue Airways vs. Canadian Pacific Railway | JetBlue Airways vs. Werner Enterprises | JetBlue Airways vs. Canadian National Railway | JetBlue Airways vs. CSX Corporation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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