Correlation Between Alaska Air and Innventure,

Can any of the company-specific risk be diversified away by investing in both Alaska Air and Innventure, 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 Innventure, 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 Innventure,, you can compare the effects of market volatilities on Alaska Air and Innventure, 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 Innventure,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Innventure,.

Diversification Opportunities for Alaska Air and Innventure,

0.39

Correlation Coefficient

Alaska Air  Innventure,

Weak diversification

The 3 months correlation between Alaska and Innventure, is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Innventure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure, 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 Innventure,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure, has no effect on the direction of Alaska Air i.e., Alaska Air and Innventure, go up and down completely randomly.

Pair Corralation between Alaska Air and Innventure,

Considering the 90-day investment horizon Alaska Air Group is expected to generate 0.64 times more return on investment than Innventure,. However, Alaska Air Group is 1.56 times less risky than Innventure,. It trades about -0.12 of its potential returns per unit of risk. Innventure, is currently generating about -0.22 per unit of risk. If you would invest  6,602  in Alaska Air Group on December 20, 2024 and sell it today you would lose (1,317) from holding Alaska Air Group or give up 19.95% of portfolio value over 90 days.

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

Alaska Air Group  vs.  Innventure,

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 conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Innventure,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Innventure, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Alaska Air and Innventure,

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

The idea behind Alaska Air Group and Innventure, 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.