Correlation Between Planet Image and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Planet Image 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 Planet Image and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Image International and JetBlue Airways Corp, you can compare the effects of market volatilities on Planet Image 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 Planet Image with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Image and JetBlue Airways.
Diversification Opportunities for Planet Image and JetBlue Airways
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Planet and JetBlue is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Planet Image International 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 Planet Image 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 Planet Image International 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 Planet Image i.e., Planet Image and JetBlue Airways go up and down completely randomly.
Pair Corralation between Planet Image and JetBlue Airways
Given the investment horizon of 90 days Planet Image International is expected to generate 0.83 times more return on investment than JetBlue Airways. However, Planet Image International is 1.21 times less risky than JetBlue Airways. It trades about 0.12 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about -0.12 per unit of risk. If you would invest 297.00 in Planet Image International on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Planet Image International or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Image International vs. JetBlue Airways Corp
Performance |
| Timeline |
| Planet Image Interna |
| JetBlue Airways Corp |
Planet Image and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Image and JetBlue Airways
The main advantage of trading using opposite Planet Image and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Image 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.| Planet Image vs. JetBlue Airways Corp | Planet Image vs. NH Foods Ltd | Planet Image vs. Bridgford Foods | Planet Image vs. Mesa Air Group |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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