Correlation Between JetBlue Airways and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on JetBlue Airways and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Celsius Holdings.
Diversification Opportunities for JetBlue Airways and Celsius Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JetBlue and Celsius is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Celsius Holdings go up and down completely randomly.
Pair Corralation between JetBlue Airways and Celsius Holdings
Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Celsius Holdings. In addition to that, JetBlue Airways is 1.65 times more volatile than Celsius Holdings. It trades about -0.15 of its total potential returns per unit of risk. Celsius Holdings is currently generating about -0.16 per unit of volatility. If you would invest 3,140 in Celsius Holdings on August 29, 2024 and sell it today you would lose (380.00) from holding Celsius Holdings or give up 12.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Celsius Holdings
Performance |
| Timeline |
| JetBlue Airways Corp |
| Celsius Holdings |
JetBlue Airways and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Celsius Holdings
The main advantage of trading using opposite JetBlue Airways and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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