Correlation Between Mesa Air and UNION
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By analyzing existing cross correlation between Mesa Air Group and UNION ELEC 295, you can compare the effects of market volatilities on Mesa Air and UNION 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 UNION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and UNION.
Diversification Opportunities for Mesa Air and UNION
Good diversification
The 3 months correlation between Mesa and UNION is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and UNION ELEC 295 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION ELEC 295 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 UNION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION ELEC 295 has no effect on the direction of Mesa Air i.e., Mesa Air and UNION go up and down completely randomly.
Pair Corralation between Mesa Air and UNION
Given the investment horizon of 90 days Mesa Air is expected to generate 14.86 times less return on investment than UNION. But when comparing it to its historical volatility, Mesa Air Group is 8.84 times less risky than UNION. It trades about 0.03 of its potential returns per unit of risk. UNION ELEC 295 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,337 in UNION ELEC 295 on September 12, 2024 and sell it today you would earn a total of 193.00 from holding UNION ELEC 295 or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.4% |
| Values | Daily Returns |
Mesa Air Group vs. UNION ELEC 295
Performance |
| Timeline |
| Mesa Air Group |
| UNION ELEC 295 |
Mesa Air and UNION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and UNION
The main advantage of trading using opposite Mesa Air and UNION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, UNION 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 UNION will offset losses from the drop in UNION'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 |
| UNION vs. Yuexiu Transport Infrastructure | UNION vs. Ryanair Holdings PLC | UNION vs. Sphere Entertainment Co | UNION vs. 51Talk Online Education |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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