Correlation Between Alaska Air and 04685A3D1

Can any of the company-specific risk be diversified away by investing in both Alaska Air and 04685A3D1 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 04685A3D1 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 ATH 173 02 OCT 26, you can compare the effects of market volatilities on Alaska Air and 04685A3D1 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 04685A3D1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and 04685A3D1.

Diversification Opportunities for Alaska Air and 04685A3D1

-0.01

Correlation Coefficient

Alaska Air  04685A3D1

Good diversification

The 3 months correlation between Alaska and 04685A3D1 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and ATH 173 02 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 173 02 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 04685A3D1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 173 02 has no effect on the direction of Alaska Air i.e., Alaska Air and 04685A3D1 go up and down completely randomly.

Pair Corralation between Alaska Air and 04685A3D1

Considering the 90-day investment horizon Alaska Air Group is expected to under-perform the 04685A3D1. In addition to that, Alaska Air is 1.67 times more volatile than ATH 173 02 OCT 26. It trades about -0.12 of its total potential returns per unit of risk. ATH 173 02 OCT 26 is currently generating about -0.16 per unit of volatility. If you would invest  9,472  in ATH 173 02 OCT 26 on December 25, 2024 and sell it today you would lose (759.00) from holding ATH 173 02 OCT 26 or give up 8.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.67%
Values	Daily Returns

Alaska Air Group  vs.  ATH 173 02 OCT 26

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.

ATH 173 02

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATH 173 02 OCT 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic 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 ATH 173 02 OCT 26 investors.

Pair Trading with Alaska Air and 04685A3D1

The main advantage of trading using opposite Alaska Air and 04685A3D1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, 04685A3D1 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 04685A3D1 will offset losses from the drop in 04685A3D1's long position.

The idea behind Alaska Air Group and ATH 173 02 OCT 26 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.