Correlation Between United Airlines and Fluor
Can any of the company-specific risk be diversified away by investing in both United Airlines and Fluor 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 Fluor 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 Fluor, you can compare the effects of market volatilities on United Airlines and Fluor 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 Fluor. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Fluor.
Diversification Opportunities for United Airlines and Fluor
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Fluor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Fluor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluor 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 Fluor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluor has no effect on the direction of United Airlines i.e., United Airlines and Fluor go up and down completely randomly.
Pair Corralation between United Airlines and Fluor
If you would invest 158,500 in United Airlines Holdings on September 1, 2024 and sell it today you would earn a total of 38,300 from holding United Airlines Holdings or generate 24.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. Fluor
Performance |
| Timeline |
| United Airlines Holdings |
| Fluor |
United Airlines and Fluor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Fluor
The main advantage of trading using opposite United Airlines and Fluor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Fluor 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 Fluor will offset losses from the drop in Fluor's long position.| United Airlines vs. The Select Sector | United Airlines vs. Promotora y Operadora | United Airlines vs. SPDR Series Trust | United Airlines vs. iShares Trust |
| Fluor vs. Cognizant Technology Solutions | Fluor vs. Prudential Financial | Fluor vs. United Airlines Holdings | Fluor vs. Southwest Airlines |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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