Correlation Between Mesa Air and Global E
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Global E 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 Global E 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 Global E Online, you can compare the effects of market volatilities on Mesa Air and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Global E.
Diversification Opportunities for Mesa Air and Global E
Excellent diversification
The 3 months correlation between Mesa and Global is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Mesa Air i.e., Mesa Air and Global E go up and down completely randomly.
Pair Corralation between Mesa Air and Global E
Given the investment horizon of 90 days Mesa Air is expected to generate 2.03 times less return on investment than Global E. In addition to that, Mesa Air is 1.95 times more volatile than Global E Online. It trades about 0.02 of its total potential returns per unit of risk. Global E Online is currently generating about 0.07 per unit of volatility. If you would invest 2,202 in Global E Online on August 26, 2024 and sell it today you would earn a total of 2,787 from holding Global E Online or generate 126.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Global E Online
Performance |
| Timeline |
| Mesa Air Group |
| Global E Online |
Mesa Air and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Global E
The main advantage of trading using opposite Mesa Air and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |