Correlation Between JetBlue Airways and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming, you can compare the effects of market volatilities on JetBlue Airways and Contagious Gaming 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 Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Contagious Gaming.
Diversification Opportunities for JetBlue Airways and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JetBlue and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming 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 Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Contagious Gaming go up and down completely randomly.
Pair Corralation between JetBlue Airways and Contagious Gaming
If you would invest 607.00 in JetBlue Airways Corp on August 30, 2024 and sell it today you would lose (11.00) from holding JetBlue Airways Corp or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Contagious Gaming
Performance |
| Timeline |
| JetBlue Airways Corp |
| Contagious Gaming |
JetBlue Airways and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Contagious Gaming
The main advantage of trading using opposite JetBlue Airways and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.The idea behind JetBlue Airways Corp and Contagious Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Contagious Gaming vs. Alsea SAB de | Contagious Gaming vs. Marstons PLC | Contagious Gaming vs. Bagger Daves Burger | Contagious Gaming vs. Marstons PLC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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