Correlation Between JetBlue Airways and HUMANA
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By analyzing existing cross correlation between JetBlue Airways Corp and HUMANA INC, you can compare the effects of market volatilities on JetBlue Airways and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and HUMANA.
Diversification Opportunities for JetBlue Airways and HUMANA
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JetBlue and HUMANA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and HUMANA go up and down completely randomly.
Pair Corralation between JetBlue Airways and HUMANA
Given the investment horizon of 90 days JetBlue Airways is expected to generate 158.67 times less return on investment than HUMANA. But when comparing it to its historical volatility, JetBlue Airways Corp is 21.33 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
JetBlue Airways Corp vs. HUMANA INC
Performance |
| Timeline |
| JetBlue Airways Corp |
| HUMANA INC |
JetBlue Airways and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and HUMANA
The main advantage of trading using opposite JetBlue Airways and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| JetBlue Airways vs. Allegiant Travel | JetBlue Airways vs. Copa Holdings SA | JetBlue Airways vs. SkyWest | JetBlue Airways vs. Air Transport Services |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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