Correlation Between Accretion Acquisition and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Accretion Acquisition and Alaska Air 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 Accretion Acquisition and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accretion Acquisition Corp and Alaska Air Group, you can compare the effects of market volatilities on Accretion Acquisition and Alaska Air 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 Accretion Acquisition with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accretion Acquisition and Alaska Air.
Diversification Opportunities for Accretion Acquisition and Alaska Air
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Accretion and Alaska is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Accretion Acquisition Corp and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and Accretion Acquisition 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 Accretion Acquisition Corp are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Accretion Acquisition i.e., Accretion Acquisition and Alaska Air go up and down completely randomly.
Pair Corralation between Accretion Acquisition and Alaska Air
If you would invest 5,408 in Alaska Air Group on September 12, 2024 and sell it today you would earn a total of 721.00 from holding Alaska Air Group or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.28% |
| Values | Daily Returns |
Accretion Acquisition Corp vs. Alaska Air Group
Performance |
| Timeline |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alaska Air Group |
Accretion Acquisition and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accretion Acquisition and Alaska Air
The main advantage of trading using opposite Accretion Acquisition and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accretion Acquisition position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| Accretion Acquisition vs. Alaska Air Group | Accretion Acquisition vs. Pentair PLC | Accretion Acquisition vs. Jacobs Solutions | Accretion Acquisition vs. Westinghouse Air Brake |
| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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