Correlation Between Westrock Coffee and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Westrock Coffee and JetBlue Airways at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Westrock Coffee and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westrock Coffee and JetBlue Airways Corp, you can compare the effects of market volatilities on Westrock Coffee 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 Westrock Coffee with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westrock Coffee and JetBlue Airways.
Diversification Opportunities for Westrock Coffee and JetBlue Airways
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westrock and JetBlue is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Westrock Coffee 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 Westrock Coffee 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 Westrock Coffee 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 Westrock Coffee i.e., Westrock Coffee and JetBlue Airways go up and down completely randomly.
Pair Corralation between Westrock Coffee and JetBlue Airways
Given the investment horizon of 90 days Westrock Coffee is expected to generate 0.89 times more return on investment than JetBlue Airways. However, Westrock Coffee is 1.12 times less risky than JetBlue Airways. It trades about 0.28 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.09 per unit of risk. If you would invest 662.00 in Westrock Coffee on August 31, 2024 and sell it today you would earn a total of 145.00 from holding Westrock Coffee or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westrock Coffee vs. JetBlue Airways Corp
Performance |
| Timeline |
| Westrock Coffee |
| JetBlue Airways Corp |
Westrock Coffee and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westrock Coffee and JetBlue Airways
The main advantage of trading using opposite Westrock Coffee and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westrock Coffee 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.| Westrock Coffee vs. Coffee Holding Co | Westrock Coffee vs. Bridgford Foods | Westrock Coffee vs. John B Sanfilippo | Westrock Coffee vs. Treehouse Foods |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |