Correlation Between United Airlines and Fraser
Can any of the company-specific risk be diversified away by investing in both United Airlines and Fraser 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 Fraser 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 Fraser and Neave, you can compare the effects of market volatilities on United Airlines and Fraser 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 Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Fraser.
Diversification Opportunities for United Airlines and Fraser
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Fraser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave 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 Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of United Airlines i.e., United Airlines and Fraser go up and down completely randomly.
Pair Corralation between United Airlines and Fraser
If you would invest 8,913 in United Airlines Holdings on September 13, 2024 and sell it today you would earn a total of 684.00 from holding United Airlines Holdings or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
United Airlines Holdings vs. Fraser and Neave
Performance |
| Timeline |
| United Airlines Holdings |
| Fraser and Neave |
United Airlines and Fraser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Fraser
The main advantage of trading using opposite United Airlines and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser'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 |
| Fraser vs. ConAgra Foods | Fraser vs. McCormick Company Incorporated | Fraser vs. Campbell Soup | Fraser vs. Kellanova |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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