Correlation Between Carbon Race and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Carbon Race 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 Carbon Race and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carbon Race Corp and JetBlue Airways Corp, you can compare the effects of market volatilities on Carbon Race 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 Carbon Race with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carbon Race and JetBlue Airways.
Diversification Opportunities for Carbon Race and JetBlue Airways
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carbon and JetBlue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carbon Race Corp 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 Carbon Race 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 Carbon Race Corp 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 Carbon Race i.e., Carbon Race and JetBlue Airways go up and down completely randomly.
Pair Corralation between Carbon Race and JetBlue Airways
If you would invest 607.00 in JetBlue Airways Corp on August 30, 2024 and sell it today you would lose (11.00) from holding JetBlue Airways Corp or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carbon Race Corp vs. JetBlue Airways Corp
Performance |
| Timeline |
| Carbon Race Corp |
| JetBlue Airways Corp |
Carbon Race and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carbon Race and JetBlue Airways
The main advantage of trading using opposite Carbon Race and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carbon Race 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.| Carbon Race vs. 360 Finance | Carbon Race vs. Atlanticus Holdings | Carbon Race vs. X Financial Class | Carbon Race vs. Yirendai |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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