Correlation Between Life Time and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Life Time and Mesa Air 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 Life Time and Mesa Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Mesa Air Group, you can compare the effects of market volatilities on Life Time and Mesa Air 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 Life Time with a short position of Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Mesa Air.
Diversification Opportunities for Life Time and Mesa Air
Modest diversification
The 3 months correlation between Life and Mesa is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air Group and Life Time 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 Life Time Group are associated (or correlated) with Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Life Time i.e., Life Time and Mesa Air go up and down completely randomly.
Pair Corralation between Life Time and Mesa Air
Considering the 90-day investment horizon Life Time Group is expected to generate 0.43 times more return on investment than Mesa Air. However, Life Time Group is 2.32 times less risky than Mesa Air. It trades about 0.06 of its potential returns per unit of risk. Mesa Air Group is currently generating about 0.02 per unit of risk. If you would invest 1,211 in Life Time Group on September 19, 2024 and sell it today you would earn a total of 995.00 from holding Life Time Group or generate 82.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. Mesa Air Group
Performance |
| Timeline |
| Life Time Group |
| Mesa Air Group |
Life Time and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Mesa Air
The main advantage of trading using opposite Life Time and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets |