Correlation Between JetBlue Airways and BOS Better
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and BOS Better 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 BOS Better 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 BOS Better Online, you can compare the effects of market volatilities on JetBlue Airways and BOS Better 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 BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and BOS Better.
Diversification Opportunities for JetBlue Airways and BOS Better
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between JetBlue and BOS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online 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 BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and BOS Better go up and down completely randomly.
Pair Corralation between JetBlue Airways and BOS Better
Given the investment horizon of 90 days JetBlue Airways is expected to generate 1.04 times less return on investment than BOS Better. In addition to that, JetBlue Airways is 2.48 times more volatile than BOS Better Online. It trades about 0.04 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.1 per unit of volatility. If you would invest 282.00 in BOS Better Online on September 3, 2024 and sell it today you would earn a total of 61.00 from holding BOS Better Online or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. BOS Better Online
Performance |
| Timeline |
| JetBlue Airways Corp |
| BOS Better Online |
JetBlue Airways and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and BOS Better
The main advantage of trading using opposite JetBlue Airways and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.| JetBlue Airways vs. Copa Holdings SA | JetBlue Airways vs. SkyWest | JetBlue Airways vs. Air Transport Services | JetBlue Airways vs. Mesa Air Group |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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