Correlation Between JetBlue Airways and PS Business
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on JetBlue Airways and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and PS Business.
Diversification Opportunities for JetBlue Airways and PS Business
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JetBlue and PSBXP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and PS Business go up and down completely randomly.
Pair Corralation between JetBlue Airways and PS Business
If you would invest (100.00) in PS Business Parks on November 27, 2024 and sell it today you would earn a total of 100.00 from holding PS Business Parks or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. PS Business Parks
Performance |
| Timeline |
| JetBlue Airways Corp |
| PS Business Parks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
JetBlue Airways and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and PS Business
The main advantage of trading using opposite JetBlue Airways and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' 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 |
| PS Business vs. RBC Bearings Incorporated | PS Business vs. Aris Water Solutions | PS Business vs. Suburban Propane Partners | PS Business vs. Evergy, |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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