Correlation Between BPCEGP and Alaska Air
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By analyzing existing cross correlation between BPCEGP 45 15 MAR 25 and Alaska Air Group, you can compare the effects of market volatilities on BPCEGP and Alaska 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 BPCEGP with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPCEGP and Alaska Air.
Diversification Opportunities for BPCEGP and Alaska Air
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BPCEGP and Alaska is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BPCEGP 45 15 MAR 25 and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and BPCEGP 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 BPCEGP 45 15 MAR 25 are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of BPCEGP i.e., BPCEGP and Alaska Air go up and down completely randomly.
Pair Corralation between BPCEGP and Alaska Air
Assuming the 90 days trading horizon BPCEGP 45 15 MAR 25 is expected to under-perform the Alaska Air. But the bond apears to be less risky and, when comparing its historical volatility, BPCEGP 45 15 MAR 25 is 4.99 times less risky than Alaska Air. The bond trades about -0.37 of its potential returns per unit of risk. The Alaska Air Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,710 in Alaska Air Group on August 28, 2024 and sell it today you would earn a total of 634.00 from holding Alaska Air Group or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 38.1% |
| Values | Daily Returns |
BPCEGP 45 15 MAR 25 vs. Alaska Air Group
Performance |
| Timeline |
| BPCEGP 45 15 |
| Alaska Air Group |
BPCEGP and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPCEGP and Alaska Air
The main advantage of trading using opposite BPCEGP and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPCEGP position performs unexpectedly, Alaska 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| BPCEGP vs. Canlan Ice Sports | BPCEGP vs. JD Sports Fashion | BPCEGP vs. Verra Mobility Corp | BPCEGP vs. Mesa Air Group |
| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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