Correlation Between Frontier Group and Air T
Can any of the company-specific risk be diversified away by investing in both Frontier Group and Air T 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 Frontier Group and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frontier Group Holdings and Air T Inc, you can compare the effects of market volatilities on Frontier Group and Air T 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 Frontier Group with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontier Group and Air T.
Diversification Opportunities for Frontier Group and Air T
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Frontier and Air is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Group Holdings and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc and Frontier Group 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 Frontier Group Holdings are associated (or correlated) with Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of Frontier Group i.e., Frontier Group and Air T go up and down completely randomly.
Pair Corralation between Frontier Group and Air T
Given the investment horizon of 90 days Frontier Group Holdings is expected to under-perform the Air T. But the stock apears to be less risky and, when comparing its historical volatility, Frontier Group Holdings is 1.05 times less risky than Air T. The stock trades about 0.0 of its potential returns per unit of risk. The Air T Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,742 in Air T Inc on August 27, 2024 and sell it today you would earn a total of 197.00 from holding Air T Inc or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frontier Group Holdings vs. Air T Inc
Performance |
| Timeline |
| Frontier Group Holdings |
| Air T Inc |
Frontier Group and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontier Group and Air T
The main advantage of trading using opposite Frontier Group and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Group position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.| Frontier Group vs. JetBlue Airways Corp | Frontier Group vs. Southwest Airlines | Frontier Group vs. United Airlines Holdings | Frontier Group vs. American Airlines Group |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |