Correlation Between JetBlue Airways and 023771S25

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Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and 023771S25 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 023771S25 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 AAL 325 15 OCT 28, you can compare the effects of market volatilities on JetBlue Airways and 023771S25 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 023771S25. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and 023771S25.

Diversification Opportunities for JetBlue Airways and 023771S25

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between JetBlue and 023771S25 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and AAL 325 15 OCT 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 325 15 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 023771S25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 325 15 has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and 023771S25 go up and down completely randomly.

Pair Corralation between JetBlue Airways and 023771S25

Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 0.92 times more return on investment than 023771S25. However, JetBlue Airways Corp is 1.09 times less risky than 023771S25. It trades about 0.18 of its potential returns per unit of risk. AAL 325 15 OCT 28 is currently generating about -0.3 per unit of risk. If you would invest  637.00  in JetBlue Airways Corp on September 12, 2024 and sell it today you would earn a total of  116.00  from holding JetBlue Airways Corp or generate 18.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy36.36%
ValuesDaily Returns

JetBlue Airways Corp  vs.  AAL 325 15 OCT 28

 Performance 
       Timeline  
JetBlue Airways Corp 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, JetBlue Airways unveiled solid returns over the last few months and may actually be approaching a breakup point.
AAL 325 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AAL 325 15 OCT 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for AAL 325 15 OCT 28 investors.

JetBlue Airways and 023771S25 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JetBlue Airways and 023771S25

The main advantage of trading using opposite JetBlue Airways and 023771S25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, 023771S25 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 023771S25 will offset losses from the drop in 023771S25's long position.
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The idea behind JetBlue Airways Corp and AAL 325 15 OCT 28 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.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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