Correlation Between Sonida Senior and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and JetBlue Airways Corp, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and JetBlue Airways.
Diversification Opportunities for Sonida Senior and JetBlue Airways
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and JetBlue is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living 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 Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and JetBlue Airways go up and down completely randomly.
Pair Corralation between Sonida Senior and JetBlue Airways
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 1.17 times more return on investment than JetBlue Airways. However, Sonida Senior is 1.17 times more volatile than JetBlue Airways Corp. It trades about 0.09 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.04 per unit of risk. If you would invest 980.00 in Sonida Senior Living on September 14, 2024 and sell it today you would earn a total of 1,439 from holding Sonida Senior Living or generate 146.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonida Senior Living vs. JetBlue Airways Corp
Performance |
| Timeline |
| Sonida Senior Living |
| JetBlue Airways Corp |
Sonida Senior and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and JetBlue Airways
The main advantage of trading using opposite Sonida Senior and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.| Sonida Senior vs. Avita Medical | Sonida Senior vs. Sight Sciences | Sonida Senior vs. Treace Medical Concepts | Sonida Senior vs. Neuropace |
| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines 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
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |