Correlation Between Alaska Air and Bemobi Mobile

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

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

Diversification Opportunities for Alaska Air and Bemobi Mobile

-0.48

Correlation Coefficient

Alaska Air  Bemobi Mobile

Very good diversification

The 3 months correlation between Alaska and Bemobi is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group, and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech and Alaska Air 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 Alaska Air Group, are associated (or correlated) with Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of Alaska Air i.e., Alaska Air and Bemobi Mobile go up and down completely randomly.

Pair Corralation between Alaska Air and Bemobi Mobile

Assuming the 90 days trading horizon Alaska Air Group, is expected to under-perform the Bemobi Mobile. In addition to that, Alaska Air is 1.26 times more volatile than Bemobi Mobile Tech. It trades about -0.18 of its total potential returns per unit of risk. Bemobi Mobile Tech is currently generating about 0.16 per unit of volatility. If you would invest  1,350  in Bemobi Mobile Tech on December 23, 2024 and sell it today you would earn a total of  291.00  from holding Bemobi Mobile Tech or generate 21.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alaska Air Group,  vs.  Bemobi Mobile Tech

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. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bemobi Mobile Tech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bemobi Mobile Tech are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bemobi Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alaska Air and Bemobi Mobile

The main advantage of trading using opposite Alaska Air and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.

The idea behind Alaska Air Group, and Bemobi Mobile Tech 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.