Correlation Between United Airlines and El Puerto
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By analyzing existing cross correlation between United Airlines Holdings and El Puerto de, you can compare the effects of market volatilities on United Airlines and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and El Puerto.
Diversification Opportunities for United Airlines and El Puerto
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and LIVEPOLC-1 is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of United Airlines i.e., United Airlines and El Puerto go up and down completely randomly.
Pair Corralation between United Airlines and El Puerto
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 3.03 times more return on investment than El Puerto. However, United Airlines is 3.03 times more volatile than El Puerto de. It trades about 0.35 of its potential returns per unit of risk. El Puerto de is currently generating about -0.03 per unit of risk. If you would invest 192,000 in United Airlines Holdings on October 20, 2024 and sell it today you would earn a total of 30,800 from holding United Airlines Holdings or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. El Puerto de
Performance |
| Timeline |
| United Airlines Holdings |
| El Puerto de |
United Airlines and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and El Puerto
The main advantage of trading using opposite United Airlines and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| United Airlines vs. UnitedHealth Group Incorporated | United Airlines vs. Lloyds Banking Group | United Airlines vs. Southern Copper | United Airlines vs. First Republic Bank |
| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. Companhia Brasileira de | El Puerto vs. Grupo Famsa SAB |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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