Correlation Between JetBlue Airways and Toshiba
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Toshiba 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 Toshiba 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 Toshiba, you can compare the effects of market volatilities on JetBlue Airways and Toshiba 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 Toshiba. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Toshiba.
Diversification Opportunities for JetBlue Airways and Toshiba
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JetBlue and Toshiba is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Toshiba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba 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 Toshiba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Toshiba go up and down completely randomly.
Pair Corralation between JetBlue Airways and Toshiba
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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
JetBlue Airways Corp vs. Toshiba
Performance |
| Timeline |
| JetBlue Airways Corp |
| Toshiba |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JetBlue Airways and Toshiba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and Toshiba
The main advantage of trading using opposite JetBlue Airways and Toshiba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Toshiba 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 Toshiba will offset losses from the drop in Toshiba's long position.| JetBlue Airways vs. Canadian Pacific Railway | JetBlue Airways vs. Volaris | JetBlue Airways vs. Werner Enterprises | JetBlue Airways vs. Canadian National Railway |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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