Correlation Between JetBlue Airways and Ecovyst
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Ecovyst 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 Ecovyst 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 Ecovyst, you can compare the effects of market volatilities on JetBlue Airways and Ecovyst 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 Ecovyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Ecovyst.
Diversification Opportunities for JetBlue Airways and Ecovyst
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between JetBlue and Ecovyst is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Ecovyst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecovyst 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 Ecovyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecovyst has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Ecovyst go up and down completely randomly.
Pair Corralation between JetBlue Airways and Ecovyst
Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 1.37 times more return on investment than Ecovyst. However, JetBlue Airways is 1.37 times more volatile than Ecovyst. It trades about 0.04 of its potential returns per unit of risk. Ecovyst is currently generating about 0.0 per unit of risk. If you would invest 550.00 in JetBlue Airways Corp on September 3, 2024 and sell it today you would earn a total of 69.00 from holding JetBlue Airways Corp or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Ecovyst
Performance |
| Timeline |
| JetBlue Airways Corp |
| Ecovyst |
JetBlue Airways and Ecovyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Ecovyst
The main advantage of trading using opposite JetBlue Airways and Ecovyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Ecovyst 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 Ecovyst will offset losses from the drop in Ecovyst'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 |
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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