Correlation Between Martin Marietta and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and JetBlue Airways 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 Martin Marietta and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and JetBlue Airways, you can compare the effects of market volatilities on Martin Marietta and JetBlue Airways 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 Martin Marietta with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and JetBlue Airways.
Diversification Opportunities for Martin Marietta and JetBlue Airways
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Martin and JetBlue is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and JetBlue Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways has no effect on the direction of Martin Marietta i.e., Martin Marietta and JetBlue Airways go up and down completely randomly.
Pair Corralation between Martin Marietta and JetBlue Airways
If you would invest 1,114,857 in Martin Marietta Materials on November 3, 2024 and sell it today you would earn a total of 3,343 from holding Martin Marietta Materials or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Martin Marietta Materials vs. JetBlue Airways
Performance |
| Timeline |
| Martin Marietta Materials |
| JetBlue Airways |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Martin Marietta and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and JetBlue Airways
The main advantage of trading using opposite Martin Marietta and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.| Martin Marietta vs. McEwen Mining | Martin Marietta vs. Verizon Communications | Martin Marietta vs. Micron Technology | Martin Marietta vs. DXC Technology |
| JetBlue Airways vs. McEwen Mining | JetBlue Airways vs. KB Home | JetBlue Airways vs. Southern Copper | JetBlue Airways vs. Desarrolladora Homex SAB |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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