Correlation Between Mesa Air and Casio Computer
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Casio Computer 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 Casio Computer 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 Casio Computer Co, you can compare the effects of market volatilities on Mesa Air and Casio Computer 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 Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Casio Computer.
Diversification Opportunities for Mesa Air and Casio Computer
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mesa and Casio is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Casio Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer has no effect on the direction of Mesa Air i.e., Mesa Air and Casio Computer go up and down completely randomly.
Pair Corralation between Mesa Air and Casio Computer
Given the investment horizon of 90 days Mesa Air Group is expected to generate 2.69 times more return on investment than Casio Computer. However, Mesa Air is 2.69 times more volatile than Casio Computer Co. It trades about 0.05 of its potential returns per unit of risk. Casio Computer Co is currently generating about -0.02 per unit of risk. If you would invest 69.00 in Mesa Air Group on August 24, 2024 and sell it today you would earn a total of 19.52 from holding Mesa Air Group or generate 28.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Casio Computer Co
Performance |
| Timeline |
| Mesa Air Group |
| Casio Computer |
Mesa Air and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Casio Computer
The main advantage of trading using opposite Mesa Air and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer'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 |
| Casio Computer vs. Apple Inc | Casio Computer vs. Sharp | Casio Computer vs. TCL Electronics Holdings | Casio Computer vs. Xiaomi Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |