Correlation Between JetBlue Airways and China Southern
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and China Southern 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 China Southern 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 China Southern Airlines, you can compare the effects of market volatilities on JetBlue Airways and China Southern 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 China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and China Southern.
Diversification Opportunities for JetBlue Airways and China Southern
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JetBlue and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and China Southern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern Airlines 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 China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern Airlines has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and China Southern go up and down completely randomly.
Pair Corralation between JetBlue Airways and China Southern
If you would invest 556.00 in JetBlue Airways Corp on September 5, 2024 and sell it today you would earn a total of 50.00 from holding JetBlue Airways Corp or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
JetBlue Airways Corp vs. China Southern Airlines
Performance |
| Timeline |
| JetBlue Airways Corp |
| China Southern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JetBlue Airways and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and China Southern
The main advantage of trading using opposite JetBlue Airways and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern'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 |
| China Southern vs. NETGEAR | China Southern vs. Western Digital | China Southern vs. JetBlue Airways Corp | China Southern vs. Senmiao Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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