Correlation Between Mesa Air and Gaxosai
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Gaxosai 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 Gaxosai 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 Gaxosai, you can compare the effects of market volatilities on Mesa Air and Gaxosai 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 Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Gaxosai.
Diversification Opportunities for Mesa Air and Gaxosai
Modest diversification
The 3 months correlation between Mesa and Gaxosai is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai 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 Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Mesa Air i.e., Mesa Air and Gaxosai go up and down completely randomly.
Pair Corralation between Mesa Air and Gaxosai
Given the investment horizon of 90 days Mesa Air is expected to generate 4.76 times less return on investment than Gaxosai. But when comparing it to its historical volatility, Mesa Air Group is 2.01 times less risky than Gaxosai. It trades about 0.02 of its potential returns per unit of risk. Gaxosai is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Gaxosai on September 14, 2024 and sell it today you would lose (14.00) from holding Gaxosai or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Gaxosai
Performance |
| Timeline |
| Mesa Air Group |
| Gaxosai |
Mesa Air and Gaxosai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Gaxosai
The main advantage of trading using opposite Mesa Air and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.| Mesa Air vs. Southwest Airlines | Mesa Air vs. United Airlines Holdings | Mesa Air vs. Frontier Group Holdings |
| Gaxosai vs. Franklin Wireless Corp | Gaxosai vs. NuRAN Wireless | Gaxosai vs. Radcom | Gaxosai vs. Eastern Co |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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