Correlation Between Mesa Air and First Ship
Can any of the company-specific risk be diversified away by investing in both Mesa Air and First Ship 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 First Ship 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 First Ship Lease, you can compare the effects of market volatilities on Mesa Air and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and First Ship.
Diversification Opportunities for Mesa Air and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mesa and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Mesa Air i.e., Mesa Air and First Ship go up and down completely randomly.
Pair Corralation between Mesa Air and First Ship
If you would invest 91.00 in Mesa Air Group on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Mesa Air Group or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. First Ship Lease
Performance |
| Timeline |
| Mesa Air Group |
| First Ship Lease |
Mesa Air and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and First Ship
The main advantage of trading using opposite Mesa Air and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship'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 |
| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. Ashtead Group plc | First Ship vs. AerCap Holdings NV |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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