Correlation Between Hawaiian Holdings and Air France
Can any of the company-specific risk be diversified away by investing in both Hawaiian Holdings and Air France 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 Hawaiian Holdings and Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Holdings and Air France KLM, you can compare the effects of market volatilities on Hawaiian Holdings and Air France 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 Hawaiian Holdings with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Holdings and Air France.
Diversification Opportunities for Hawaiian Holdings and Air France
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hawaiian and Air is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Holdings and Air France KLM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air France KLM and Hawaiian Holdings 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 Hawaiian Holdings are associated (or correlated) with Air France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air France KLM has no effect on the direction of Hawaiian Holdings i.e., Hawaiian Holdings and Air France go up and down completely randomly.
Pair Corralation between Hawaiian Holdings and Air France
If you would invest 1,800 in Hawaiian Holdings on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Hawaiian Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hawaiian Holdings vs. Air France KLM
Performance |
| Timeline |
| Hawaiian Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Air France KLM |
Hawaiian Holdings and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Holdings and Air France
The main advantage of trading using opposite Hawaiian Holdings and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Holdings position performs unexpectedly, Air France 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 Air France will offset losses from the drop in Air France's long position.| Hawaiian Holdings vs. Southwest Airlines | Hawaiian Holdings vs. JetBlue Airways Corp | Hawaiian Holdings vs. United Airlines Holdings | Hawaiian Holdings vs. Delta Air Lines |
| Air France vs. Seychelle Environmtl | Air France vs. Energy and Water | Air France vs. One World Universe | Air France vs. Vow ASA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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