Correlation Between United Airlines and First Republic
Can any of the company-specific risk be diversified away by investing in both United Airlines and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on United Airlines and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and First Republic.
Diversification Opportunities for United Airlines and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of United Airlines i.e., United Airlines and First Republic go up and down completely randomly.
Pair Corralation between United Airlines and First Republic
If you would invest 155,799 in United Airlines Holdings on August 29, 2024 and sell it today you would earn a total of 50,201 from holding United Airlines Holdings or generate 32.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. First Republic Bank
Performance |
| Timeline |
| United Airlines Holdings |
| First Republic Bank |
United Airlines and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and First Republic
The main advantage of trading using opposite United Airlines and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| United Airlines vs. New Oriental Education | United Airlines vs. Monster Beverage Corp | United Airlines vs. Hoteles City Express | United Airlines vs. Micron Technology |
| First Republic vs. First Majestic Silver | First Republic vs. Ameriprise Financial | First Republic vs. McEwen Mining | First Republic vs. Lloyds Banking Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| 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 |