Correlation Between Amrica and JetBlue Airways
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By analyzing existing cross correlation between Amrica Mvil SAB and JetBlue Airways Corp, you can compare the effects of market volatilities on Amrica and JetBlue Airways 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 Amrica with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amrica and JetBlue Airways.
Diversification Opportunities for Amrica and JetBlue Airways
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amrica and JetBlue is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Amrica Mvil SAB and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp and Amrica 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 Amrica Mvil SAB are associated (or correlated) with JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of Amrica i.e., Amrica and JetBlue Airways go up and down completely randomly.
Pair Corralation between Amrica and JetBlue Airways
Assuming the 90 days trading horizon Amrica Mvil SAB is expected to under-perform the JetBlue Airways. But the bond apears to be less risky and, when comparing its historical volatility, Amrica Mvil SAB is 3.34 times less risky than JetBlue Airways. The bond trades about -0.01 of its potential returns per unit of risk. The JetBlue Airways Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 502.00 in JetBlue Airways Corp on September 2, 2024 and sell it today you would earn a total of 95.00 from holding JetBlue Airways Corp or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Amrica Mvil SAB vs. JetBlue Airways Corp
Performance |
| Timeline |
| Amrica Mvil SAB |
| JetBlue Airways Corp |
Amrica and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amrica and JetBlue Airways
The main advantage of trading using opposite Amrica and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amrica position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.The idea behind Amrica Mvil SAB and JetBlue Airways Corp 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.| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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