Correlation Between JetBlue Airways and CSIF I

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

Diversification Opportunities for JetBlue Airways and CSIF I

0.63

Correlation Coefficient

JetBlue Airways  CSIF I

Poor diversification

The 3 months correlation between JetBlue and CSIF is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and CSIF I Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Bond 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 CSIF I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF I Bond has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and CSIF I go up and down completely randomly.

Pair Corralation between JetBlue Airways and CSIF I

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the CSIF I. In addition to that, JetBlue Airways is 7.9 times more volatile than CSIF I Bond. It trades about 0.0 of its total potential returns per unit of risk. CSIF I Bond is currently generating about 0.12 per unit of volatility. If you would invest  66,872  in CSIF I Bond on October 22, 2024 and sell it today you would earn a total of  306.00  from holding CSIF I Bond or generate 0.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	73.68%
Values	Daily Returns

JetBlue Airways Corp  vs.  CSIF I Bond

JetBlue Airways Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, JetBlue Airways may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CSIF I Bond

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSIF I Bond are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, CSIF I is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JetBlue Airways and CSIF I

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

The idea behind JetBlue Airways Corp and CSIF I Bond 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.