Correlation Between Fideicomiso Irrevocable and JetBlue Airways

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Can any of the company-specific risk be diversified away by investing in both Fideicomiso Irrevocable 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 Fideicomiso Irrevocable and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fideicomiso Irrevocable No and JetBlue Airways, you can compare the effects of market volatilities on Fideicomiso Irrevocable 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 Fideicomiso Irrevocable with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fideicomiso Irrevocable and JetBlue Airways.

Diversification Opportunities for Fideicomiso Irrevocable and JetBlue Airways

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Fideicomiso and JetBlue is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fideicomiso Irrevocable No and JetBlue Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways and Fideicomiso Irrevocable 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 Fideicomiso Irrevocable No 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 has no effect on the direction of Fideicomiso Irrevocable i.e., Fideicomiso Irrevocable and JetBlue Airways go up and down completely randomly.

Pair Corralation between Fideicomiso Irrevocable and JetBlue Airways

Assuming the 90 days trading horizon Fideicomiso Irrevocable is expected to generate 3.3 times less return on investment than JetBlue Airways. But when comparing it to its historical volatility, Fideicomiso Irrevocable No is 4.34 times less risky than JetBlue Airways. It trades about 0.06 of its potential returns per unit of risk. JetBlue Airways is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,125  in JetBlue Airways on August 28, 2024 and sell it today you would earn a total of  2,563  from holding JetBlue Airways or generate 28.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Fideicomiso Irrevocable No  vs.  JetBlue Airways

 Performance 
       Timeline  
Fideicomiso Irrevocable 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Fideicomiso Irrevocable No are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Fideicomiso Irrevocable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JetBlue Airways 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, JetBlue Airways showed solid returns over the last few months and may actually be approaching a breakup point.

Fideicomiso Irrevocable and JetBlue Airways Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fideicomiso Irrevocable and JetBlue Airways

The main advantage of trading using opposite Fideicomiso Irrevocable and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fideicomiso Irrevocable 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.
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The idea behind Fideicomiso Irrevocable No and JetBlue Airways pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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