Correlation Between BioAge Labs, and JetBlue Airways

Can any of the company-specific risk be diversified away by investing in both BioAge Labs, and JetBlue Airways 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 BioAge Labs, and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioAge Labs, and JetBlue Airways Corp, you can compare the effects of market volatilities on BioAge Labs, and JetBlue Airways 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 BioAge Labs, with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAge Labs, and JetBlue Airways.

Diversification Opportunities for BioAge Labs, and JetBlue Airways

-0.47

Correlation Coefficient

BioAge Labs,  JetBlue Airways

Very good diversification

The 3 months correlation between BioAge and JetBlue is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BioAge Labs, and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp and BioAge Labs, 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 BioAge Labs, are associated (or correlated) with JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of BioAge Labs, i.e., BioAge Labs, and JetBlue Airways go up and down completely randomly.

Pair Corralation between BioAge Labs, and JetBlue Airways

Given the investment horizon of 90 days BioAge Labs, is expected to generate 2.05 times more return on investment than JetBlue Airways. However, BioAge Labs, is 2.05 times more volatile than JetBlue Airways Corp. It trades about 0.19 of its potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.16 per unit of risk. If you would invest  465.00  in BioAge Labs, on October 8, 2024 and sell it today you would earn a total of  117.00  from holding BioAge Labs, or generate 25.16% return on investment over 90 days.

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

BioAge Labs,  vs.  JetBlue Airways Corp

BioAge Labs,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioAge Labs, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

JetBlue Airways Corp

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, JetBlue Airways may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with BioAge Labs, and JetBlue Airways

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

The idea behind BioAge Labs, and JetBlue Airways Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.