Correlation Between JetBlue Airways and Sanquan Food

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

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

Diversification Opportunities for JetBlue Airways and Sanquan Food

0.41

Correlation Coefficient

JetBlue Airways  Sanquan Food

Very weak diversification

The 3 months correlation between JetBlue and Sanquan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Sanquan Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanquan Food and JetBlue Airways 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 JetBlue Airways Corp are associated (or correlated) with Sanquan Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanquan Food has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Sanquan Food go up and down completely randomly.

Pair Corralation between JetBlue Airways and Sanquan Food

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Sanquan Food. In addition to that, JetBlue Airways is 3.66 times more volatile than Sanquan Food Co. It trades about -0.09 of its total potential returns per unit of risk. Sanquan Food Co is currently generating about -0.13 per unit of volatility. If you would invest  1,261  in Sanquan Food Co on December 24, 2024 and sell it today you would lose (131.00) from holding Sanquan Food Co or give up 10.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.08%
Values	Daily Returns

JetBlue Airways Corp  vs.  Sanquan Food Co

JetBlue Airways Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days JetBlue Airways Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Sanquan Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sanquan Food Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with JetBlue Airways and Sanquan Food

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

The idea behind JetBlue Airways Corp and Sanquan Food Co 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.