Correlation Between JetBlue Airways and CIGNA
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By analyzing existing cross correlation between JetBlue Airways Corp and CIGNA P, you can compare the effects of market volatilities on JetBlue Airways and CIGNA 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 CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and CIGNA.
Diversification Opportunities for JetBlue Airways and CIGNA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between JetBlue and CIGNA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 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 CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and CIGNA go up and down completely randomly.
Pair Corralation between JetBlue Airways and CIGNA
Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 20.12 times more return on investment than CIGNA. However, JetBlue Airways is 20.12 times more volatile than CIGNA P. It trades about 0.07 of its potential returns per unit of risk. CIGNA P is currently generating about 0.03 per unit of risk. If you would invest 571.00 in JetBlue Airways Corp on September 3, 2024 and sell it today you would earn a total of 26.00 from holding JetBlue Airways Corp or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. CIGNA P
Performance |
| Timeline |
| JetBlue Airways Corp |
| CIGNA P |
JetBlue Airways and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and CIGNA
The main advantage of trading using opposite JetBlue Airways and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA's long position.| JetBlue Airways vs. Copa Holdings SA | JetBlue Airways vs. SkyWest | JetBlue Airways vs. Air Transport Services | JetBlue Airways vs. Mesa Air Group |
| CIGNA vs. Mesa Air Group | CIGNA vs. JetBlue Airways Corp | CIGNA vs. Alaska Air Group | CIGNA vs. Sonida Senior Living |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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