Correlation Between Mesa Air and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Greencity Acquisition 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 Greencity Acquisition 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 Greencity Acquisition Corp, you can compare the effects of market volatilities on Mesa Air and Greencity Acquisition 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 Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Greencity Acquisition.
Diversification Opportunities for Mesa Air and Greencity Acquisition
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesa and Greencity is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition 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 Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Mesa Air i.e., Mesa Air and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Mesa Air and Greencity Acquisition
If you would invest 94.00 in Mesa Air Group on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Mesa Air Group or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mesa Air Group vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Mesa Air Group |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesa Air and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Greencity Acquisition
The main advantage of trading using opposite Mesa Air and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition'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 |
| Greencity Acquisition vs. Boston Beer | Greencity Acquisition vs. Diageo PLC ADR | Greencity Acquisition vs. Thai Beverage PCL | Greencity Acquisition vs. Anheuser Busch Inbev |
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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