Correlation Between United Airlines and Monex SAB
Can any of the company-specific risk be diversified away by investing in both United Airlines and Monex 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 Monex 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 Monex SAB de, you can compare the effects of market volatilities on United Airlines and Monex 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 Monex SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Monex SAB.
Diversification Opportunities for United Airlines and Monex SAB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Monex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Monex SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monex 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 Monex SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monex SAB de has no effect on the direction of United Airlines i.e., United Airlines and Monex SAB go up and down completely randomly.
Pair Corralation between United Airlines and Monex SAB
If you would invest 201,400 in United Airlines Holdings on November 2, 2024 and sell it today you would earn a total of 21,100 from holding United Airlines Holdings or generate 10.48% 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. Monex SAB de
Performance |
| Timeline |
| United Airlines Holdings |
| Monex SAB de |
United Airlines and Monex SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Monex SAB
The main advantage of trading using opposite United Airlines and Monex SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Monex 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 Monex SAB will offset losses from the drop in Monex SAB's long position.| United Airlines vs. Taiwan Semiconductor Manufacturing | United Airlines vs. Verizon Communications | United Airlines vs. Prudential Financial | United Airlines vs. Southern Copper |
| Monex SAB vs. The Boeing | Monex SAB vs. Intuit Inc | Monex SAB vs. Mastercard Incorporated | Monex SAB vs. First Solar |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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