Correlation Between JetBlue Airways and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and WEBUY GLOBAL 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 WEBUY GLOBAL 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 WEBUY GLOBAL LTD, you can compare the effects of market volatilities on JetBlue Airways and WEBUY GLOBAL 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 WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and WEBUY GLOBAL.
Diversification Opportunities for JetBlue Airways and WEBUY GLOBAL
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between JetBlue and WEBUY is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD 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 WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between JetBlue Airways and WEBUY GLOBAL
Given the investment horizon of 90 days JetBlue Airways is expected to generate 2.45 times less return on investment than WEBUY GLOBAL. But when comparing it to its historical volatility, JetBlue Airways Corp is 2.82 times less risky than WEBUY GLOBAL. It trades about 0.04 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21.00 in WEBUY GLOBAL LTD on September 3, 2024 and sell it today you would lose (2.00) from holding WEBUY GLOBAL LTD or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| JetBlue Airways Corp |
| WEBUY GLOBAL LTD |
JetBlue Airways and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and WEBUY GLOBAL
The main advantage of trading using opposite JetBlue Airways and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, WEBUY GLOBAL 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL'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 |
| WEBUY GLOBAL vs. Tootsie Roll Industries | WEBUY GLOBAL vs. FitLife Brands, Common | WEBUY GLOBAL vs. China Tontine Wines | WEBUY GLOBAL vs. Celsius Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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