Correlation Between Mesa Air and Amplifon SpA
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Amplifon SpA 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 Mesa Air and Amplifon SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and Amplifon SpA, you can compare the effects of market volatilities on Mesa Air and Amplifon SpA 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 Mesa Air with a short position of Amplifon SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Amplifon SpA.
Diversification Opportunities for Mesa Air and Amplifon SpA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesa and Amplifon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Amplifon SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplifon SpA and Mesa Air 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 Mesa Air Group are associated (or correlated) with Amplifon SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplifon SpA has no effect on the direction of Mesa Air i.e., Mesa Air and Amplifon SpA go up and down completely randomly.
Pair Corralation between Mesa Air and Amplifon SpA
Given the investment horizon of 90 days Mesa Air Group is expected to generate 3.69 times more return on investment than Amplifon SpA. However, Mesa Air is 3.69 times more volatile than Amplifon SpA. It trades about 0.01 of its potential returns per unit of risk. Amplifon SpA is currently generating about 0.03 per unit of risk. If you would invest 155.00 in Mesa Air Group on September 12, 2024 and sell it today you would lose (49.00) from holding Mesa Air Group or give up 31.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.53% |
| Values | Daily Returns |
Mesa Air Group vs. Amplifon SpA
Performance |
| Timeline |
| Mesa Air Group |
| Amplifon SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesa Air and Amplifon SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Amplifon SpA
The main advantage of trading using opposite Mesa Air and Amplifon SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Amplifon SpA 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 Amplifon SpA will offset losses from the drop in Amplifon SpA's long position.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| Amplifon SpA vs. Bassett Furniture Industries | Amplifon SpA vs. Hudson Pacific Properties | Amplifon SpA vs. LGI Homes | Amplifon SpA vs. Mesa Air Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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