Correlation Between Simon Worldwide and United Airlines
Can any of the company-specific risk be diversified away by investing in both Simon Worldwide and United Airlines 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 Simon Worldwide and United Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Worldwide and United Airlines Holdings, you can compare the effects of market volatilities on Simon Worldwide and United Airlines 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 Simon Worldwide with a short position of United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Worldwide and United Airlines.
Diversification Opportunities for Simon Worldwide and United Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Worldwide and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings and Simon Worldwide 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 Simon Worldwide are associated (or correlated) with United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Simon Worldwide i.e., Simon Worldwide and United Airlines go up and down completely randomly.
Pair Corralation between Simon Worldwide and United Airlines
If you would invest 7,693 in United Airlines Holdings on August 30, 2024 and sell it today you would earn a total of 1,942 from holding United Airlines Holdings or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Simon Worldwide vs. United Airlines Holdings
Performance |
| Timeline |
| Simon Worldwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Airlines Holdings |
Simon Worldwide and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Worldwide and United Airlines
The main advantage of trading using opposite Simon Worldwide and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Worldwide position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| Simon Worldwide vs. PGE Corp | Simon Worldwide vs. NRG Energy | Simon Worldwide vs. Evolution Gaming Group | Simon Worldwide vs. Boyd Gaming |
| United Airlines vs. American Airlines Group | United Airlines vs. Southwest Airlines | United Airlines vs. JetBlue Airways Corp | United Airlines vs. Frontier Group Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |