Correlation Between 01609WBA9 and Mesa Air
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By analyzing existing cross correlation between BABA 325 09 FEB 61 and Mesa Air Group, you can compare the effects of market volatilities on 01609WBA9 and Mesa Air 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 01609WBA9 with a short position of Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01609WBA9 and Mesa Air.
Diversification Opportunities for 01609WBA9 and Mesa Air
Significant diversification
The 3 months correlation between 01609WBA9 and Mesa is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BABA 325 09 FEB 61 and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air Group and 01609WBA9 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 BABA 325 09 FEB 61 are associated (or correlated) with Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of 01609WBA9 i.e., 01609WBA9 and Mesa Air go up and down completely randomly.
Pair Corralation between 01609WBA9 and Mesa Air
Assuming the 90 days trading horizon BABA 325 09 FEB 61 is expected to under-perform the Mesa Air. But the bond apears to be less risky and, when comparing its historical volatility, BABA 325 09 FEB 61 is 2.94 times less risky than Mesa Air. The bond trades about -0.22 of its potential returns per unit of risk. The Mesa Air Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Mesa Air Group on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Mesa Air Group or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
BABA 325 09 FEB 61 vs. Mesa Air Group
Performance |
| Timeline |
| BABA 325 09 |
| Mesa Air Group |
01609WBA9 and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 01609WBA9 and Mesa Air
The main advantage of trading using opposite 01609WBA9 and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01609WBA9 position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.The idea behind BABA 325 09 FEB 61 and Mesa Air Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mesa Air vs. Canadian Pacific Railway | Mesa Air vs. Volaris | Mesa Air vs. Werner Enterprises | Mesa Air vs. flyExclusive, |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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