Correlation Between Mesa Air and U-Haul Holding
Can any of the company-specific risk be diversified away by investing in both Mesa Air and U-Haul Holding 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 U-Haul Holding 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 U Haul Holding, you can compare the effects of market volatilities on Mesa Air and U-Haul Holding 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 U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and U-Haul Holding.
Diversification Opportunities for Mesa Air and U-Haul Holding
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mesa and U-Haul is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Mesa Air i.e., Mesa Air and U-Haul Holding go up and down completely randomly.
Pair Corralation between Mesa Air and U-Haul Holding
Given the investment horizon of 90 days Mesa Air is expected to generate 1.75 times less return on investment than U-Haul Holding. In addition to that, Mesa Air is 3.8 times more volatile than U Haul Holding. It trades about 0.01 of its total potential returns per unit of risk. U Haul Holding is currently generating about 0.04 per unit of volatility. If you would invest 5,040 in U Haul Holding on September 2, 2024 and sell it today you would earn a total of 1,204 from holding U Haul Holding or generate 23.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. U Haul Holding
Performance |
| Timeline |
| Mesa Air Group |
| U Haul Holding |
Mesa Air and U-Haul Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and U-Haul Holding
The main advantage of trading using opposite Mesa Air and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding'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 |
| U-Haul Holding vs. Acco Brands | U-Haul Holding vs. ChampionX | U-Haul Holding vs. Daily Journal Corp | U-Haul Holding vs. Zane Interactive Publishing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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