Correlation Between FIBRA Storage and JetBlue Airways
Specify exactly 2 symbols:
By analyzing existing cross correlation between FIBRA Storage and JetBlue Airways, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and JetBlue Airways.
Diversification Opportunities for FIBRA Storage and JetBlue Airways
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and JetBlue is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and JetBlue Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways and FIBRA Storage 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 FIBRA Storage 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 has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and JetBlue Airways go up and down completely randomly.
Pair Corralation between FIBRA Storage and JetBlue Airways
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.56 times less return on investment than JetBlue Airways. But when comparing it to its historical volatility, FIBRA Storage is 3.67 times less risky than JetBlue Airways. It trades about 0.02 of its potential returns per unit of risk. JetBlue Airways is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 15,000 in JetBlue Airways on August 28, 2024 and sell it today you would lose (3,312) from holding JetBlue Airways or give up 22.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. JetBlue Airways
Performance |
| Timeline |
| FIBRA Storage |
| JetBlue Airways |
FIBRA Storage and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and JetBlue Airways
The main advantage of trading using opposite FIBRA Storage and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. Martin Marietta Materials | FIBRA Storage vs. DXC Technology | FIBRA Storage vs. Southwest Airlines | FIBRA Storage vs. Capital One Financial |
| JetBlue Airways vs. Capital One Financial | JetBlue Airways vs. CVS Health | JetBlue Airways vs. Ameriprise Financial | JetBlue Airways vs. Grupo Carso SAB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |