Correlation Between Mesa Air and NantKwest
Can any of the company-specific risk be diversified away by investing in both Mesa Air and NantKwest 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 NantKwest 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 NantKwest, you can compare the effects of market volatilities on Mesa Air and NantKwest 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 NantKwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and NantKwest.
Diversification Opportunities for Mesa Air and NantKwest
Pay attention - limited upside
The 3 months correlation between Mesa and NantKwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and NantKwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NantKwest 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 NantKwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NantKwest has no effect on the direction of Mesa Air i.e., Mesa Air and NantKwest go up and down completely randomly.
Pair Corralation between Mesa Air and NantKwest
If you would invest 94.00 in Mesa Air Group on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Mesa Air Group or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mesa Air Group vs. NantKwest
Performance |
| Timeline |
| Mesa Air Group |
| NantKwest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesa Air and NantKwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and NantKwest
The main advantage of trading using opposite Mesa Air and NantKwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, NantKwest 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 NantKwest will offset losses from the drop in NantKwest'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 |
| NantKwest vs. Mesa Air Group | NantKwest vs. SmartStop Self Storage | NantKwest vs. LB Foster | NantKwest vs. United Airlines Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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