Correlation Between United Airlines and DINE SAB
Can any of the company-specific risk be diversified away by investing in both United Airlines and DINE SAB 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 United Airlines and DINE SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and DINE SAB de, you can compare the effects of market volatilities on United Airlines and DINE SAB 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 United Airlines with a short position of DINE SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and DINE SAB.
Diversification Opportunities for United Airlines and DINE SAB
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and DINE is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and DINE SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DINE SAB de and United Airlines 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 United Airlines Holdings are associated (or correlated) with DINE SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DINE SAB de has no effect on the direction of United Airlines i.e., United Airlines and DINE SAB go up and down completely randomly.
Pair Corralation between United Airlines and DINE SAB
If you would invest 182,700 in United Airlines Holdings on September 13, 2024 and sell it today you would earn a total of 14,300 from holding United Airlines Holdings or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. DINE SAB de
Performance |
| Timeline |
| United Airlines Holdings |
| DINE SAB de |
United Airlines and DINE SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and DINE SAB
The main advantage of trading using opposite United Airlines and DINE SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, DINE SAB 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 DINE SAB will offset losses from the drop in DINE SAB's long position.| United Airlines vs. Delta Air Lines | United Airlines vs. Southwest Airlines | United Airlines vs. Controladora Vuela Compaa |
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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 Managers module to screen money managers from public funds and ETFs managed around the world.
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