Correlation Between BOEING and Allegiant Travel
Specify exactly 2 symbols:
By analyzing existing cross correlation between BOEING CO and Allegiant Travel, you can compare the effects of market volatilities on BOEING and Allegiant Travel 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 BOEING with a short position of Allegiant Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOEING and Allegiant Travel.
Diversification Opportunities for BOEING and Allegiant Travel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BOEING and Allegiant is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BOEING CO and Allegiant Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Travel and BOEING 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 BOEING CO are associated (or correlated) with Allegiant Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Travel has no effect on the direction of BOEING i.e., BOEING and Allegiant Travel go up and down completely randomly.
Pair Corralation between BOEING and Allegiant Travel
Assuming the 90 days trading horizon BOEING CO is expected to generate 0.08 times more return on investment than Allegiant Travel. However, BOEING CO is 12.58 times less risky than Allegiant Travel. It trades about 0.1 of its potential returns per unit of risk. Allegiant Travel is currently generating about -0.35 per unit of risk. If you would invest 9,777 in BOEING CO on December 11, 2024 and sell it today you would earn a total of 127.00 from holding BOEING CO or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
BOEING CO vs. Allegiant Travel
Performance |
| Timeline |
| BOEING CO |
| Allegiant Travel |
BOEING and Allegiant Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOEING and Allegiant Travel
The main advantage of trading using opposite BOEING and Allegiant Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOEING position performs unexpectedly, Allegiant Travel 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 Allegiant Travel will offset losses from the drop in Allegiant Travel's long position.| BOEING vs. Beauty Health Co | BOEING vs. Vulcan Materials | BOEING vs. United Guardian | BOEING vs. Titan America SA |
| Allegiant Travel vs. Azul SA | Allegiant Travel vs. Alaska Air Group | Allegiant Travel vs. International Consolidated Airlines | Allegiant Travel vs. Sun Country Airlines |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |