Correlation Between ALTAIR RES and Alaska Air

Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and Alaska Air 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 ALTAIR RES and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALTAIR RES INC and Alaska Air Group, you can compare the effects of market volatilities on ALTAIR RES 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 ALTAIR RES with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and Alaska Air.

Diversification Opportunities for ALTAIR RES and Alaska Air

0.0

Correlation Coefficient

ALTAIR RES  Alaska Air

Pay attention - limited upside

The 3 months correlation between ALTAIR and Alaska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC 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 ALTAIR RES 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 ALTAIR RES INC 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 ALTAIR RES i.e., ALTAIR RES and Alaska Air go up and down completely randomly.

Pair Corralation between ALTAIR RES and Alaska Air

If you would invest  0.05  in ALTAIR RES INC on December 27, 2024 and sell it today you would earn a total of  0.00  from holding ALTAIR RES INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ALTAIR RES INC  vs.  Alaska Air Group

ALTAIR RES INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALTAIR RES INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ALTAIR RES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Alaska Air Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alaska Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ALTAIR RES and Alaska Air

The main advantage of trading using opposite ALTAIR RES and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES 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.

The idea behind ALTAIR RES INC and Alaska Air Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.