Correlation Between UTime and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both UTime 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 UTime and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UTime Limited and JetBlue Airways Corp, you can compare the effects of market volatilities on UTime 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 UTime with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of UTime and JetBlue Airways.
Diversification Opportunities for UTime and JetBlue Airways
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UTime and JetBlue is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding UTime Limited 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 UTime 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 UTime Limited 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 UTime i.e., UTime and JetBlue Airways go up and down completely randomly.
Pair Corralation between UTime and JetBlue Airways
Considering the 90-day investment horizon UTime Limited is expected to under-perform the JetBlue Airways. In addition to that, UTime is 1.08 times more volatile than JetBlue Airways Corp. It trades about -0.16 of its total potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.2 per unit of volatility. If you would invest 632.00 in JetBlue Airways Corp on September 13, 2024 and sell it today you would earn a total of 121.00 from holding JetBlue Airways Corp or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UTime Limited vs. JetBlue Airways Corp
Performance |
| Timeline |
| UTime Limited |
| JetBlue Airways Corp |
UTime and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UTime and JetBlue Airways
The main advantage of trading using opposite UTime and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UTime 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.| UTime vs. JetBlue Airways Corp | UTime vs. American Airlines Group | UTime vs. Copa Holdings SA | UTime vs. Marchex |
| JetBlue Airways vs. American Airlines Group | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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