Correlation Between JetBlue Airways and African Agriculture
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and African Agriculture 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 JetBlue Airways and African Agriculture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JetBlue Airways Corp and African Agriculture Holdings, you can compare the effects of market volatilities on JetBlue Airways and African Agriculture 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 JetBlue Airways with a short position of African Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and African Agriculture.
Diversification Opportunities for JetBlue Airways and African Agriculture
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JetBlue and African is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and African Agriculture Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on African Agriculture and JetBlue Airways 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 JetBlue Airways Corp are associated (or correlated) with African Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of African Agriculture has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and African Agriculture go up and down completely randomly.
Pair Corralation between JetBlue Airways and African Agriculture
If you would invest 632.00 in JetBlue Airways Corp on September 13, 2024 and sell it today you would earn a total of 121.00 from holding JetBlue Airways Corp or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
JetBlue Airways Corp vs. African Agriculture Holdings
Performance |
| Timeline |
| JetBlue Airways Corp |
| African Agriculture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
JetBlue Airways and African Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and African Agriculture
The main advantage of trading using opposite JetBlue Airways and African Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, African Agriculture 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 African Agriculture will offset losses from the drop in African Agriculture's long position.| JetBlue Airways vs. American Airlines Group | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. Frontier Group Holdings |
| African Agriculture vs. Capital Clean Energy | African Agriculture vs. PennantPark Investment | African Agriculture vs. US Global Investors | African Agriculture vs. Royalty Management Holding |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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