Correlation Between United Airlines and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both United Airlines and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on United Airlines and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and MOVIE GAMES.
Diversification Opportunities for United Airlines and MOVIE GAMES
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between United and MOVIE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of United Airlines i.e., United Airlines and MOVIE GAMES go up and down completely randomly.
Pair Corralation between United Airlines and MOVIE GAMES
Assuming the 90 days trading horizon United Airlines is expected to generate 1.94 times less return on investment than MOVIE GAMES. But when comparing it to its historical volatility, United Airlines Holdings is 1.57 times less risky than MOVIE GAMES. It trades about 0.16 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 351.00 in MOVIE GAMES SA on November 5, 2024 and sell it today you would earn a total of 63.00 from holding MOVIE GAMES SA or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. MOVIE GAMES SA
Performance |
| Timeline |
| United Airlines Holdings |
| MOVIE GAMES SA |
United Airlines and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and MOVIE GAMES
The main advantage of trading using opposite United Airlines and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| United Airlines vs. Geely Automobile Holdings | United Airlines vs. VELA TECHNOLPLC LS 0001 | United Airlines vs. Kingdee International Software | United Airlines vs. ASPEN TECHINC DL |
| MOVIE GAMES vs. PARKEN Sport Entertainment | MOVIE GAMES vs. CENTURIA OFFICE REIT | MOVIE GAMES vs. SIEM OFFSHORE NEW | MOVIE GAMES vs. GREENX METALS LTD |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |