Correlation Between United Airlines and NuStar
Specify exactly 2 symbols:
By analyzing existing cross correlation between United Airlines Holdings and NuStar Logistics 6, you can compare the effects of market volatilities on United Airlines and NuStar 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 NuStar. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and NuStar.
Diversification Opportunities for United Airlines and NuStar
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and NuStar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and NuStar Logistics 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuStar Logistics 6 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 NuStar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuStar Logistics 6 has no effect on the direction of United Airlines i.e., United Airlines and NuStar go up and down completely randomly.
Pair Corralation between United Airlines and NuStar
Considering the 90-day investment horizon United Airlines Holdings is expected to generate 4.82 times more return on investment than NuStar. However, United Airlines is 4.82 times more volatile than NuStar Logistics 6. It trades about 0.14 of its potential returns per unit of risk. NuStar Logistics 6 is currently generating about -0.01 per unit of risk. If you would invest 4,126 in United Airlines Holdings on September 2, 2024 and sell it today you would earn a total of 5,557 from holding United Airlines Holdings or generate 134.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
United Airlines Holdings vs. NuStar Logistics 6
Performance |
| Timeline |
| United Airlines Holdings |
| NuStar Logistics 6 |
United Airlines and NuStar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and NuStar
The main advantage of trading using opposite United Airlines and NuStar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, NuStar 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 NuStar will offset losses from the drop in NuStar'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 |
| NuStar vs. United Airlines Holdings | NuStar vs. Oatly Group AB | NuStar vs. TFI International | NuStar vs. Sun Country Airlines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |