Correlation Between JetBlue Airways and 718172CY3

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and 718172CY3 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 718172CY3 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 PM 4875 13 FEB 26, you can compare the effects of market volatilities on JetBlue Airways and 718172CY3 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 718172CY3. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and 718172CY3.

Diversification Opportunities for JetBlue Airways and 718172CY3

-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between JetBlue and 718172CY3 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and PM 4875 13 FEB 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM 4875 13 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 718172CY3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM 4875 13 has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and 718172CY3 go up and down completely randomly.

Pair Corralation between JetBlue Airways and 718172CY3

Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 16.6 times more return on investment than 718172CY3. However, JetBlue Airways is 16.6 times more volatile than PM 4875 13 FEB 26. It trades about 0.01 of its potential returns per unit of risk. PM 4875 13 FEB 26 is currently generating about 0.02 per unit of risk. If you would invest  710.00  in JetBlue Airways Corp on September 3, 2024 and sell it today you would lose (113.00) from holding JetBlue Airways Corp or give up 15.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy88.08%
ValuesDaily Returns

JetBlue Airways Corp  vs.  PM 4875 13 FEB 26

 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.
PM 4875 13 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PM 4875 13 FEB 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 718172CY3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

JetBlue Airways and 718172CY3 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JetBlue Airways and 718172CY3

The main advantage of trading using opposite JetBlue Airways and 718172CY3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, 718172CY3 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 718172CY3 will offset losses from the drop in 718172CY3's long position.
JetBlue Airways vs. Allegiant Travel
JetBlue Airways vs. Copa Holdings SA
JetBlue Airways vs. SkyWest
JetBlue Airways vs. Air Transport Services
The idea behind JetBlue Airways Corp and PM 4875 13 FEB 26 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.
718172CY3 vs. AEP TEX INC
718172CY3 vs. US BANK NATIONAL
718172CY3 vs. MetLife
718172CY3 vs. Brera Holdings PLC
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY