Correlation Between PACIFIC and Alaska Air
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By analyzing existing cross correlation between PACIFIC GAS AND and Alaska Air Group, you can compare the effects of market volatilities on PACIFIC 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 PACIFIC with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Alaska Air.
Diversification Opportunities for PACIFIC and Alaska Air
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PACIFIC and Alaska is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND 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 PACIFIC 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 PACIFIC GAS AND 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 PACIFIC i.e., PACIFIC and Alaska Air go up and down completely randomly.
Pair Corralation between PACIFIC and Alaska Air
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to generate 29.12 times more return on investment than Alaska Air. However, PACIFIC is 29.12 times more volatile than Alaska Air Group. It trades about 0.06 of its potential returns per unit of risk. Alaska Air Group is currently generating about 0.05 per unit of risk. If you would invest 8,577 in PACIFIC GAS AND on September 14, 2024 and sell it today you would earn a total of 527.00 from holding PACIFIC GAS AND or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
PACIFIC GAS AND vs. Alaska Air Group
Performance |
| Timeline |
| PACIFIC GAS AND |
| Alaska Air Group |
PACIFIC and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and Alaska Air
The main advantage of trading using opposite PACIFIC and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC 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.| PACIFIC vs. Alaska Air Group | PACIFIC vs. The Cheesecake Factory | PACIFIC vs. First Watch Restaurant | PACIFIC vs. Ryanair Holdings PLC |
| Alaska Air vs. Southwest Airlines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. Frontier Group Holdings |
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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