Correlation Between United Airlines and BTS Group
Can any of the company-specific risk be diversified away by investing in both United Airlines and BTS Group 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 BTS Group 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 BTS Group Holdings, you can compare the effects of market volatilities on United Airlines and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and BTS Group.
Diversification Opportunities for United Airlines and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of United Airlines i.e., United Airlines and BTS Group go up and down completely randomly.
Pair Corralation between United Airlines and BTS Group
If you would invest 8,978 in United Airlines Holdings on September 14, 2024 and sell it today you would earn a total of 918.00 from holding United Airlines Holdings or generate 10.22% 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. BTS Group Holdings
Performance |
| Timeline |
| United Airlines Holdings |
| BTS Group Holdings |
United Airlines and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and BTS Group
The main advantage of trading using opposite United Airlines and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| United Airlines vs. American Airlines Group | United Airlines vs. Southwest Airlines | United Airlines vs. JetBlue Airways Corp | United Airlines vs. Delta Air Lines |
| BTS Group vs. RCI Hospitality Holdings | BTS Group vs. Rave Restaurant Group | BTS Group vs. Doubledown Interactive Co | BTS Group vs. Bt Brands |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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