Correlation Between JetBlue Airways and Paysafe
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Paysafe 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 Paysafe 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 Paysafe, you can compare the effects of market volatilities on JetBlue Airways and Paysafe 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 Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Paysafe.
Diversification Opportunities for JetBlue Airways and Paysafe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JetBlue and Paysafe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe 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 Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Paysafe go up and down completely randomly.
Pair Corralation between JetBlue Airways and Paysafe
Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 0.61 times more return on investment than Paysafe. However, JetBlue Airways Corp is 1.65 times less risky than Paysafe. It trades about 0.07 of its potential returns per unit of risk. Paysafe is currently generating about -0.01 per unit of risk. If you would invest 570.00 in JetBlue Airways Corp on September 1, 2024 and sell it today you would earn a total of 27.00 from holding JetBlue Airways Corp or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Paysafe
Performance |
| Timeline |
| JetBlue Airways Corp |
| Paysafe |
JetBlue Airways and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Paysafe
The main advantage of trading using opposite JetBlue Airways and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.| JetBlue Airways vs. Canadian Pacific Railway | JetBlue Airways vs. Werner Enterprises | JetBlue Airways vs. Canadian National Railway | JetBlue Airways vs. CSX Corporation |
| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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