Correlation Between 06738EBU8 and Alaska Air
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By analyzing existing cross correlation between BACR 2279 24 NOV 27 and Alaska Air Group, you can compare the effects of market volatilities on 06738EBU8 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 06738EBU8 with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06738EBU8 and Alaska Air.
Diversification Opportunities for 06738EBU8 and Alaska Air
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 06738EBU8 and Alaska is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding BACR 2279 24 NOV 27 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 06738EBU8 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 BACR 2279 24 NOV 27 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 06738EBU8 i.e., 06738EBU8 and Alaska Air go up and down completely randomly.
Pair Corralation between 06738EBU8 and Alaska Air
Assuming the 90 days trading horizon 06738EBU8 is expected to generate 14.3 times less return on investment than Alaska Air. But when comparing it to its historical volatility, BACR 2279 24 NOV 27 is 3.12 times less risky than Alaska Air. It trades about 0.02 of its potential returns per unit of risk. Alaska Air Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,597 in Alaska Air Group on September 2, 2024 and sell it today you would earn a total of 1,663 from holding Alaska Air Group or generate 46.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
BACR 2279 24 NOV 27 vs. Alaska Air Group
Performance |
| Timeline |
| BACR 2279 24 |
| Alaska Air Group |
06738EBU8 and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06738EBU8 and Alaska Air
The main advantage of trading using opposite 06738EBU8 and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06738EBU8 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.| 06738EBU8 vs. Alaska Air Group | 06738EBU8 vs. Stepan Company | 06738EBU8 vs. Academy Sports Outdoors | 06738EBU8 vs. Sun Country Airlines |
| Alaska Air vs. Canadian Pacific Railway | Alaska Air vs. Werner Enterprises | Alaska Air vs. Canadian National Railway | Alaska Air vs. CSX Corporation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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