Correlation Between Mesa Air and LOEWS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Mesa Air Group and LOEWS P 375, you can compare the effects of market volatilities on Mesa Air and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and LOEWS.
Diversification Opportunities for Mesa Air and LOEWS
Very weak diversification
The 3 months correlation between Mesa and LOEWS is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and LOEWS P 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 375 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 375 has no effect on the direction of Mesa Air i.e., Mesa Air and LOEWS go up and down completely randomly.
Pair Corralation between Mesa Air and LOEWS
Given the investment horizon of 90 days Mesa Air Group is expected to generate 18.98 times more return on investment than LOEWS. However, Mesa Air is 18.98 times more volatile than LOEWS P 375. It trades about 0.02 of its potential returns per unit of risk. LOEWS P 375 is currently generating about 0.0 per unit of risk. If you would invest 146.00 in Mesa Air Group on August 30, 2024 and sell it today you would lose (34.00) from holding Mesa Air Group or give up 23.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 91.92% |
Values | Daily Returns |
Mesa Air Group vs. LOEWS P 375
Performance |
Timeline |
Mesa Air Group |
LOEWS P 375 |
Mesa Air and LOEWS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mesa Air and LOEWS
The main advantage of trading using opposite Mesa Air and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS'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 |
LOEWS vs. Postal Realty Trust | LOEWS vs. Merit Medical Systems | LOEWS vs. Mesa Air Group | LOEWS vs. Westinghouse Air Brake |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |