Correlation Between United Airlines and TARGET
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By analyzing existing cross correlation between United Airlines Holdings and TARGET P 65, you can compare the effects of market volatilities on United Airlines and TARGET 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 TARGET. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and TARGET.
Diversification Opportunities for United Airlines and TARGET
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and TARGET is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and TARGET P 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET P 65 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET P 65 has no effect on the direction of United Airlines i.e., United Airlines and TARGET go up and down completely randomly.
Pair Corralation between United Airlines and TARGET
Considering the 90-day investment horizon United Airlines is expected to generate 2.2 times less return on investment than TARGET. But when comparing it to its historical volatility, United Airlines Holdings is 1.67 times less risky than TARGET. It trades about 0.28 of its potential returns per unit of risk. TARGET P 65 is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 10,958 in TARGET P 65 on October 21, 2024 and sell it today you would earn a total of 764.00 from holding TARGET P 65 or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.58% |
| Values | Daily Returns |
United Airlines Holdings vs. TARGET P 65
Performance |
| Timeline |
| United Airlines Holdings |
| TARGET P 65 |
United Airlines and TARGET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and TARGET
The main advantage of trading using opposite United Airlines and TARGET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, TARGET 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 TARGET will offset losses from the drop in TARGET'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 |
| TARGET vs. Brandywine Realty Trust | TARGET vs. Keurig Dr Pepper | TARGET vs. Visteon Corp | TARGET vs. Vita Coco |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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