Correlation Between Alaska Air and 05724BAD1
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By analyzing existing cross correlation between Alaska Air Group and BHI 2061 15 DEC 26, you can compare the effects of market volatilities on Alaska Air and 05724BAD1 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 05724BAD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and 05724BAD1.
Diversification Opportunities for Alaska Air and 05724BAD1
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alaska and 05724BAD1 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and BHI 2061 15 DEC 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHI 2061 15 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 05724BAD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHI 2061 15 has no effect on the direction of Alaska Air i.e., Alaska Air and 05724BAD1 go up and down completely randomly.
Pair Corralation between Alaska Air and 05724BAD1
Considering the 90-day investment horizon Alaska Air Group is expected to generate 4.85 times more return on investment than 05724BAD1. However, Alaska Air is 4.85 times more volatile than BHI 2061 15 DEC 26. It trades about 0.29 of its potential returns per unit of risk. BHI 2061 15 DEC 26 is currently generating about -0.28 per unit of risk. If you would invest 5,416 in Alaska Air Group on October 10, 2024 and sell it today you would earn a total of 1,136 from holding Alaska Air Group or generate 20.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Alaska Air Group vs. BHI 2061 15 DEC 26
Performance |
Timeline |
Alaska Air Group |
BHI 2061 15 |
Alaska Air and 05724BAD1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alaska Air and 05724BAD1
The main advantage of trading using opposite Alaska Air and 05724BAD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, 05724BAD1 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 05724BAD1 will offset losses from the drop in 05724BAD1's long position.Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
05724BAD1 vs. Alaska Air Group | 05724BAD1 vs. Where Food Comes | 05724BAD1 vs. United Airlines Holdings | 05724BAD1 vs. Delta Air Lines |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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