Correlation Between United Airlines and Grupo Posadas
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By analyzing existing cross correlation between United Airlines Holdings and Grupo Posadas SAB, you can compare the effects of market volatilities on United Airlines and Grupo Posadas 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 Grupo Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Grupo Posadas.
Diversification Opportunities for United Airlines and Grupo Posadas
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Grupo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Grupo Posadas SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Posadas SAB 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 Grupo Posadas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Posadas SAB has no effect on the direction of United Airlines i.e., United Airlines and Grupo Posadas go up and down completely randomly.
Pair Corralation between United Airlines and Grupo Posadas
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 2.41 times more return on investment than Grupo Posadas. However, United Airlines is 2.41 times more volatile than Grupo Posadas SAB. It trades about 0.07 of its potential returns per unit of risk. Grupo Posadas SAB is currently generating about -0.02 per unit of risk. If you would invest 92,564 in United Airlines Holdings on October 9, 2024 and sell it today you would earn a total of 109,437 from holding United Airlines Holdings or generate 118.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. Grupo Posadas SAB
Performance |
| Timeline |
| United Airlines Holdings |
| Grupo Posadas SAB |
United Airlines and Grupo Posadas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Grupo Posadas
The main advantage of trading using opposite United Airlines and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Grupo Posadas 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 Grupo Posadas will offset losses from the drop in Grupo Posadas' long position.| United Airlines vs. UnitedHealth Group Incorporated | United Airlines vs. The Bank of | United Airlines vs. CVS Health | 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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