Correlation Between Clover Leaf and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Clover Leaf 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 Clover Leaf and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clover Leaf Capital and JetBlue Airways Corp, you can compare the effects of market volatilities on Clover Leaf 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 Clover Leaf with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clover Leaf and JetBlue Airways.
Diversification Opportunities for Clover Leaf and JetBlue Airways
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clover and JetBlue is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Clover Leaf Capital 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 Clover Leaf 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 Clover Leaf Capital 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 Clover Leaf i.e., Clover Leaf and JetBlue Airways go up and down completely randomly.
Pair Corralation between Clover Leaf and JetBlue Airways
If you would invest 571.00 in JetBlue Airways Corp on September 4, 2024 and sell it today you would earn a total of 48.00 from holding JetBlue Airways Corp or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Clover Leaf Capital vs. JetBlue Airways Corp
Performance |
| Timeline |
| Clover Leaf Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JetBlue Airways Corp |
Clover Leaf and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clover Leaf and JetBlue Airways
The main advantage of trading using opposite Clover Leaf and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Leaf 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.| Clover Leaf vs. One Gas | Clover Leaf vs. Archrock | Clover Leaf vs. Empresa Distribuidora y | Clover Leaf vs. Analog Devices |
| JetBlue Airways vs. Delta Air Lines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. Frontier Group Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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