Correlation Between JetBlue Airways and Golden Star
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Golden Star 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 Golden Star 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 Golden Star Resource, you can compare the effects of market volatilities on JetBlue Airways and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Golden Star.
Diversification Opportunities for JetBlue Airways and Golden Star
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JetBlue and Golden is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Golden Star go up and down completely randomly.
Pair Corralation between JetBlue Airways and Golden Star
Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 1.0 times more return on investment than Golden Star. However, JetBlue Airways is 1.0 times more volatile than Golden Star Resource. It trades about -0.1 of its potential returns per unit of risk. Golden Star Resource is currently generating about -0.21 per unit of risk. If you would invest 809.00 in JetBlue Airways Corp on November 28, 2024 and sell it today you would lose (163.00) from holding JetBlue Airways Corp or give up 20.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Golden Star Resource
Performance |
| Timeline |
| JetBlue Airways Corp |
| Golden Star Resource |
JetBlue Airways and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Golden Star
The main advantage of trading using opposite JetBlue Airways and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's 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 |
| Golden Star vs. CVR Partners LP | Golden Star vs. Luxfer Holdings PLC | Golden Star vs. Vantage Drilling International | Golden Star vs. Borr Drilling |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |