Correlation Between Monex SAB and United Airlines
Can any of the company-specific risk be diversified away by investing in both Monex SAB and United Airlines 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 Monex SAB and United Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monex SAB de and United Airlines Holdings, you can compare the effects of market volatilities on Monex SAB and United Airlines 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 Monex SAB with a short position of United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monex SAB and United Airlines.
Diversification Opportunities for Monex SAB and United Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monex and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monex SAB de and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings and Monex SAB 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 Monex SAB de are associated (or correlated) with United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Monex SAB i.e., Monex SAB and United Airlines go up and down completely randomly.
Pair Corralation between Monex SAB and United Airlines
If you would invest 181,488 in United Airlines Holdings on September 12, 2024 and sell it today you would earn a total of 16,312 from holding United Airlines Holdings or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monex SAB de vs. United Airlines Holdings
Performance |
| Timeline |
| Monex SAB de |
| United Airlines Holdings |
Monex SAB and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monex SAB and United Airlines
The main advantage of trading using opposite Monex SAB and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monex SAB position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| Monex SAB vs. Samsung Electronics Co | Monex SAB vs. Sony Group | Monex SAB vs. Taiwan Semiconductor Manufacturing | Monex SAB vs. Alibaba Group Holding |
| United Airlines vs. Delta Air Lines | United Airlines vs. Southwest Airlines | United Airlines vs. Controladora Vuela Compaa |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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