Correlation Between Mesa Air and Kulicke
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Kulicke 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 Kulicke 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 Kulicke and Soffa, you can compare the effects of market volatilities on Mesa Air and Kulicke 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 Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Kulicke.
Diversification Opportunities for Mesa Air and Kulicke
Excellent diversification
The 3 months correlation between Mesa and Kulicke is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa 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 Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of Mesa Air i.e., Mesa Air and Kulicke go up and down completely randomly.
Pair Corralation between Mesa Air and Kulicke
Given the investment horizon of 90 days Mesa Air Group is expected to generate 2.91 times more return on investment than Kulicke. However, Mesa Air is 2.91 times more volatile than Kulicke and Soffa. It trades about 0.03 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.02 per unit of risk. If you would invest 106.00 in Mesa Air Group on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Mesa Air Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Kulicke and Soffa
Performance |
| Timeline |
| Mesa Air Group |
| Kulicke and Soffa |
Mesa Air and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Kulicke
The main advantage of trading using opposite Mesa Air and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Kulicke 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 Kulicke will offset losses from the drop in Kulicke'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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