Correlation Between United Airlines and STGEORGE MINING
Can any of the company-specific risk be diversified away by investing in both United Airlines and STGEORGE MINING 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 STGEORGE MINING 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 STGEORGE MINING LTD, you can compare the effects of market volatilities on United Airlines and STGEORGE MINING 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 STGEORGE MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and STGEORGE MINING.
Diversification Opportunities for United Airlines and STGEORGE MINING
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between United and STGEORGE is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and STGEORGE MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STGEORGE MINING LTD 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 STGEORGE MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STGEORGE MINING LTD has no effect on the direction of United Airlines i.e., United Airlines and STGEORGE MINING go up and down completely randomly.
Pair Corralation between United Airlines and STGEORGE MINING
Assuming the 90 days trading horizon United Airlines is expected to generate 3.47 times less return on investment than STGEORGE MINING. But when comparing it to its historical volatility, United Airlines Holdings is 5.28 times less risky than STGEORGE MINING. It trades about 0.09 of its potential returns per unit of risk. STGEORGE MINING LTD is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.60 in STGEORGE MINING LTD on November 8, 2024 and sell it today you would lose (0.25) from holding STGEORGE MINING LTD or give up 15.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. STGEORGE MINING LTD
Performance |
| Timeline |
| United Airlines Holdings |
| STGEORGE MINING LTD |
United Airlines and STGEORGE MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and STGEORGE MINING
The main advantage of trading using opposite United Airlines and STGEORGE MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, STGEORGE MINING 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 STGEORGE MINING will offset losses from the drop in STGEORGE MINING's long position.| United Airlines vs. Delta Air Lines | United Airlines vs. AIR CHINA LTD | United Airlines vs. RYANAIR HLDGS ADR | United Airlines vs. Southwest Airlines Co |
| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
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.
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