Correlation Between Clear Secure and Joby Aviation
Can any of the company-specific risk be diversified away by investing in both Clear Secure and Joby Aviation 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 Clear Secure and Joby Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Secure and Joby Aviation, you can compare the effects of market volatilities on Clear Secure and Joby Aviation 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 Clear Secure with a short position of Joby Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Secure and Joby Aviation.
Diversification Opportunities for Clear Secure and Joby Aviation
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clear and Joby is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Joby Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joby Aviation and Clear Secure 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 Clear Secure are associated (or correlated) with Joby Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joby Aviation has no effect on the direction of Clear Secure i.e., Clear Secure and Joby Aviation go up and down completely randomly.
Pair Corralation between Clear Secure and Joby Aviation
Considering the 90-day investment horizon Clear Secure is expected to under-perform the Joby Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Clear Secure is 4.86 times less risky than Joby Aviation. The stock trades about -0.52 of its potential returns per unit of risk. The Joby Aviation is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Joby Aviation on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Joby Aviation or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Secure vs. Joby Aviation
Performance |
| Timeline |
| Clear Secure |
| Joby Aviation |
Clear Secure and Joby Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Secure and Joby Aviation
The main advantage of trading using opposite Clear Secure and Joby Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Secure position performs unexpectedly, Joby Aviation 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 Joby Aviation will offset losses from the drop in Joby Aviation's long position.| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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