Correlation Between United Airlines and Genworth Financial
Can any of the company-specific risk be diversified away by investing in both United Airlines and Genworth Financial 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 Genworth Financial 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 Genworth Financial, you can compare the effects of market volatilities on United Airlines and Genworth Financial 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 Genworth Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Genworth Financial.
Diversification Opportunities for United Airlines and Genworth Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Genworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Genworth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genworth Financial 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 Genworth Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genworth Financial has no effect on the direction of United Airlines i.e., United Airlines and Genworth Financial go up and down completely randomly.
Pair Corralation between United Airlines and Genworth Financial
If you would invest 200,500 in United Airlines Holdings on November 2, 2024 and sell it today you would earn a total of 22,180 from holding United Airlines Holdings or generate 11.06% 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. Genworth Financial
Performance |
| Timeline |
| United Airlines Holdings |
| Genworth Financial |
United Airlines and Genworth Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Genworth Financial
The main advantage of trading using opposite United Airlines and Genworth Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Genworth Financial 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 Genworth Financial will offset losses from the drop in Genworth Financial's long position.| United Airlines vs. Verizon Communications | United Airlines vs. Genworth Financial | United Airlines vs. The Bank of | United Airlines vs. Deutsche Bank Aktiengesellschaft |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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