Correlation Between United Airlines and FEDEX
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By analyzing existing cross correlation between United Airlines Holdings and FEDEX P 42, you can compare the effects of market volatilities on United Airlines and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and FEDEX.
Diversification Opportunities for United Airlines and FEDEX
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and FEDEX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and FEDEX P 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 42 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 42 has no effect on the direction of United Airlines i.e., United Airlines and FEDEX go up and down completely randomly.
Pair Corralation between United Airlines and FEDEX
Considering the 90-day investment horizon United Airlines Holdings is expected to under-perform the FEDEX. In addition to that, United Airlines is 3.62 times more volatile than FEDEX P 42. It trades about -0.17 of its total potential returns per unit of risk. FEDEX P 42 is currently generating about 0.13 per unit of volatility. If you would invest 9,735 in FEDEX P 42 on November 28, 2024 and sell it today you would earn a total of 192.00 from holding FEDEX P 42 or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. FEDEX P 42
Performance |
| Timeline |
| United Airlines Holdings |
| FEDEX P 42 |
United Airlines and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and FEDEX
The main advantage of trading using opposite United Airlines and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX'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 |
| FEDEX vs. Altair Engineering | FEDEX vs. WPP PLC ADR | FEDEX vs. Ryanair Holdings PLC | FEDEX vs. Mirriad Advertising plc |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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