Correlation Between Mesa Air and Granite Falls
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Granite Falls 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 Granite Falls 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 Granite Falls Energy, you can compare the effects of market volatilities on Mesa Air and Granite Falls 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 Granite Falls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Granite Falls.
Diversification Opportunities for Mesa Air and Granite Falls
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mesa and Granite is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Granite Falls Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Falls Energy 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 Granite Falls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Falls Energy has no effect on the direction of Mesa Air i.e., Mesa Air and Granite Falls go up and down completely randomly.
Pair Corralation between Mesa Air and Granite Falls
Given the investment horizon of 90 days Mesa Air Group is expected to generate 4.51 times more return on investment than Granite Falls. However, Mesa Air is 4.51 times more volatile than Granite Falls Energy. It trades about 0.0 of its potential returns per unit of risk. Granite Falls Energy is currently generating about -0.06 per unit of risk. If you would invest 136.00 in Mesa Air Group on September 1, 2024 and sell it today you would lose (28.00) from holding Mesa Air Group or give up 20.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mesa Air Group vs. Granite Falls Energy
Performance |
| Timeline |
| Mesa Air Group |
| Granite Falls Energy |
Mesa Air and Granite Falls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Granite Falls
The main advantage of trading using opposite Mesa Air and Granite Falls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Granite Falls 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 Granite Falls will offset losses from the drop in Granite Falls' long position.| Mesa Air vs. Canadian Pacific Railway | Mesa Air vs. Werner Enterprises | Mesa Air vs. Canadian National Railway | Mesa Air vs. CSX Corporation |
| Granite Falls vs. European Wax Center | Granite Falls vs. Lincoln Electric Holdings | Granite Falls vs. Ardelyx | Granite Falls vs. Mink Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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