Correlation Between Playstudios and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Playstudios 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 Playstudios and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and JetBlue Airways Corp, you can compare the effects of market volatilities on Playstudios 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 Playstudios with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and JetBlue Airways.
Diversification Opportunities for Playstudios and JetBlue Airways
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playstudios and JetBlue is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp and Playstudios 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 Playstudios 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 Corp has no effect on the direction of Playstudios i.e., Playstudios and JetBlue Airways go up and down completely randomly.
Pair Corralation between Playstudios and JetBlue Airways
Given the investment horizon of 90 days Playstudios is expected to generate 0.96 times more return on investment than JetBlue Airways. However, Playstudios is 1.04 times less risky than JetBlue Airways. It trades about 0.32 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.0 per unit of risk. If you would invest 141.00 in Playstudios on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Playstudios or generate 31.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playstudios vs. JetBlue Airways Corp
Performance |
| Timeline |
| Playstudios |
| JetBlue Airways Corp |
Playstudios and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playstudios and JetBlue Airways
The main advantage of trading using opposite Playstudios and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios 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.| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. i3 Interactive | Playstudios vs. Bragg Gaming Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |