Correlation Between Soken Chemical and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Soken Chemical and Alaska Air 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 Soken Chemical and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and Alaska Air Group, you can compare the effects of market volatilities on Soken Chemical and Alaska Air 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 Soken Chemical with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and Alaska Air.
Diversification Opportunities for Soken Chemical and Alaska Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and Alaska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and Soken Chemical 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 Soken Chemical Engineering are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Soken Chemical i.e., Soken Chemical and Alaska Air go up and down completely randomly.
Pair Corralation between Soken Chemical and Alaska Air
If you would invest 4,511 in Alaska Air Group on September 2, 2024 and sell it today you would earn a total of 466.00 from holding Alaska Air Group or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Soken Chemical Engineering vs. Alaska Air Group
Performance |
| Timeline |
| Soken Chemical Engin |
| Alaska Air Group |
Soken Chemical and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and Alaska Air
The main advantage of trading using opposite Soken Chemical and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| Soken Chemical vs. PENN NATL GAMING | Soken Chemical vs. IMPERIAL TOBACCO | Soken Chemical vs. VIVA WINE GROUP | Soken Chemical vs. ANGLER GAMING PLC |
| Alaska Air vs. MHP Hotel AG | Alaska Air vs. COVIVIO HOTELS INH | Alaska Air vs. Solstad Offshore ASA | Alaska Air vs. Burlington Stores |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |