Correlation Between United Airlines and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both United Airlines and Kerry Logistics 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 Kerry Logistics 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 Kerry Logistics Network, you can compare the effects of market volatilities on United Airlines and Kerry Logistics 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 Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Kerry Logistics.
Diversification Opportunities for United Airlines and Kerry Logistics
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Kerry is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network 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 Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of United Airlines i.e., United Airlines and Kerry Logistics go up and down completely randomly.
Pair Corralation between United Airlines and Kerry Logistics
Considering the 90-day investment horizon United Airlines Holdings is expected to generate 0.43 times more return on investment than Kerry Logistics. However, United Airlines Holdings is 2.32 times less risky than Kerry Logistics. It trades about 0.32 of its potential returns per unit of risk. Kerry Logistics Network is currently generating about -0.22 per unit of risk. If you would invest 9,556 in United Airlines Holdings on October 20, 2024 and sell it today you would earn a total of 1,182 from holding United Airlines Holdings or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Airlines Holdings vs. Kerry Logistics Network
Performance |
| Timeline |
| United Airlines Holdings |
| Kerry Logistics Network |
United Airlines and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Kerry Logistics
The main advantage of trading using opposite United Airlines and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' 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 |
| Kerry Logistics vs. Skyline | Kerry Logistics vs. Aluminum of | Kerry Logistics vs. Cortus Metals | Kerry Logistics vs. Black Mammoth Metals |
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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