Correlation Between SkyWest and U-Haul Holding
Can any of the company-specific risk be diversified away by investing in both SkyWest and U-Haul Holding 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 SkyWest and U-Haul Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SkyWest and U Haul Holding, you can compare the effects of market volatilities on SkyWest and U-Haul Holding 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 SkyWest with a short position of U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyWest and U-Haul Holding.
Diversification Opportunities for SkyWest and U-Haul Holding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SkyWest and U-Haul is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SkyWest and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding and SkyWest 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 SkyWest are associated (or correlated) with U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of SkyWest i.e., SkyWest and U-Haul Holding go up and down completely randomly.
Pair Corralation between SkyWest and U-Haul Holding
Given the investment horizon of 90 days SkyWest is expected to generate 1.6 times more return on investment than U-Haul Holding. However, SkyWest is 1.6 times more volatile than U Haul Holding. It trades about 0.3 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.21 per unit of risk. If you would invest 9,653 in SkyWest on August 31, 2024 and sell it today you would earn a total of 1,743 from holding SkyWest or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SkyWest vs. U Haul Holding
Performance |
| Timeline |
| SkyWest |
| U Haul Holding |
SkyWest and U-Haul Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SkyWest and U-Haul Holding
The main advantage of trading using opposite SkyWest and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkyWest position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding's long position.| SkyWest vs. Copa Holdings SA | SkyWest vs. Sun Country Airlines | SkyWest vs. Air Transport Services | SkyWest vs. Frontier Group Holdings |
| U-Haul Holding vs. Alvotech | U-Haul Holding vs. Triton International Limited | U-Haul Holding vs. Vindicator Silver Lead Mining | U-Haul Holding vs. BioNTech SE |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |