Correlation Between Century Therapeutics and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Century Therapeutics 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 Century Therapeutics and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Therapeutics and Alaska Air Group, you can compare the effects of market volatilities on Century Therapeutics 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 Century Therapeutics with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Therapeutics and Alaska Air.
Diversification Opportunities for Century Therapeutics and Alaska Air
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Century and Alaska is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Century Therapeutics 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 Century Therapeutics 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 Century Therapeutics 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 Century Therapeutics i.e., Century Therapeutics and Alaska Air go up and down completely randomly.
Pair Corralation between Century Therapeutics and Alaska Air
Given the investment horizon of 90 days Century Therapeutics is expected to under-perform the Alaska Air. In addition to that, Century Therapeutics is 1.46 times more volatile than Alaska Air Group. It trades about -0.61 of its total potential returns per unit of risk. Alaska Air Group is currently generating about 0.32 per unit of volatility. If you would invest 6,629 in Alaska Air Group on November 9, 2024 and sell it today you would earn a total of 812.00 from holding Alaska Air Group or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Therapeutics vs. Alaska Air Group
Performance |
| Timeline |
| Century Therapeutics |
| Alaska Air Group |
Century Therapeutics and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Therapeutics and Alaska Air
The main advantage of trading using opposite Century Therapeutics and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Therapeutics 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.| Century Therapeutics vs. Edgewise Therapeutics | Century Therapeutics vs. C4 Therapeutics | Century Therapeutics vs. Mineralys Therapeutics, Common | Century Therapeutics vs. Cullinan Oncology LLC |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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