Correlation Between United Airlines and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both United Airlines and TRADEDOUBLER 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 TRADEDOUBLER 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 TRADEDOUBLER AB SK, you can compare the effects of market volatilities on United Airlines and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and TRADEDOUBLER.
Diversification Opportunities for United Airlines and TRADEDOUBLER
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and TRADEDOUBLER is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of United Airlines i.e., United Airlines and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between United Airlines and TRADEDOUBLER
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 0.73 times more return on investment than TRADEDOUBLER. However, United Airlines Holdings is 1.36 times less risky than TRADEDOUBLER. It trades about 0.44 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about 0.02 per unit of risk. If you would invest 7,065 in United Airlines Holdings on August 29, 2024 and sell it today you would earn a total of 2,452 from holding United Airlines Holdings or generate 34.71% 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. TRADEDOUBLER AB SK
Performance |
| Timeline |
| United Airlines Holdings |
| TRADEDOUBLER AB SK |
United Airlines and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and TRADEDOUBLER
The main advantage of trading using opposite United Airlines and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| United Airlines vs. Fast Retailing Co | United Airlines vs. BURLINGTON STORES | United Airlines vs. COSTCO WHOLESALE CDR | United Airlines vs. PENN NATL GAMING |
| TRADEDOUBLER vs. The Interpublic Group | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| 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 |