Correlation Between United Airlines and DOLLAR TREE
Can any of the company-specific risk be diversified away by investing in both United Airlines and DOLLAR TREE 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 DOLLAR TREE 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 DOLLAR TREE, you can compare the effects of market volatilities on United Airlines and DOLLAR TREE 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 DOLLAR TREE. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and DOLLAR TREE.
Diversification Opportunities for United Airlines and DOLLAR TREE
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and DOLLAR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and DOLLAR TREE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOLLAR TREE 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 DOLLAR TREE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOLLAR TREE has no effect on the direction of United Airlines i.e., United Airlines and DOLLAR TREE go up and down completely randomly.
Pair Corralation between United Airlines and DOLLAR TREE
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 1.02 times more return on investment than DOLLAR TREE. However, United Airlines is 1.02 times more volatile than DOLLAR TREE. It trades about 0.31 of its potential returns per unit of risk. DOLLAR TREE is currently generating about 0.23 per unit of risk. If you would invest 7,363 in United Airlines Holdings on September 1, 2024 and sell it today you would earn a total of 1,779 from holding United Airlines Holdings or generate 24.16% 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. DOLLAR TREE
Performance |
| Timeline |
| United Airlines Holdings |
| DOLLAR TREE |
United Airlines and DOLLAR TREE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and DOLLAR TREE
The main advantage of trading using opposite United Airlines and DOLLAR TREE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, DOLLAR TREE 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 DOLLAR TREE will offset losses from the drop in DOLLAR TREE's long position.| United Airlines vs. Motorcar Parts of | United Airlines vs. Cars Inc | United Airlines vs. CARSALESCOM | United Airlines vs. Carsales |
| DOLLAR TREE vs. SIVERS SEMICONDUCTORS AB | DOLLAR TREE vs. Darden Restaurants | DOLLAR TREE vs. Reliance Steel Aluminum | DOLLAR TREE vs. Q2M Managementberatung AG |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |