Correlation Between JetBlue Airways and AMERICAN
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By analyzing existing cross correlation between JetBlue Airways Corp and AMERICAN WTR CAP, you can compare the effects of market volatilities on JetBlue Airways and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and AMERICAN.
Diversification Opportunities for JetBlue Airways and AMERICAN
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JetBlue and AMERICAN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and AMERICAN WTR CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN WTR CAP 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN WTR CAP has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and AMERICAN go up and down completely randomly.
Pair Corralation between JetBlue Airways and AMERICAN
Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 9.81 times more return on investment than AMERICAN. However, JetBlue Airways is 9.81 times more volatile than AMERICAN WTR CAP. It trades about 0.01 of its potential returns per unit of risk. AMERICAN WTR CAP is currently generating about -0.01 per unit of risk. If you would invest 850.00 in JetBlue Airways Corp on October 10, 2024 and sell it today you would lose (110.00) from holding JetBlue Airways Corp or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
JetBlue Airways Corp vs. AMERICAN WTR CAP
Performance |
| Timeline |
| JetBlue Airways Corp |
| AMERICAN WTR CAP |
JetBlue Airways and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and AMERICAN
The main advantage of trading using opposite JetBlue Airways and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's 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 |
| AMERICAN vs. JetBlue Airways Corp | AMERICAN vs. Compania Cervecerias Unidas | AMERICAN vs. Azul SA | AMERICAN vs. Copa Holdings SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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