Correlation Between JetBlue Airways and NIGHTINGALE HEALTH

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

Diversification Opportunities for JetBlue Airways and NIGHTINGALE HEALTH

-0.17

Correlation Coefficient

JetBlue Airways  NIGHTINGALE HEALTH

Good diversification

The 3 months correlation between JetBlue and NIGHTINGALE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and NIGHTINGALE HEALTH go up and down completely randomly.

Pair Corralation between JetBlue Airways and NIGHTINGALE HEALTH

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the NIGHTINGALE HEALTH. In addition to that, JetBlue Airways is 1.33 times more volatile than NIGHTINGALE HEALTH EO. It trades about -0.09 of its total potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about 0.13 per unit of volatility. If you would invest  269.00  in NIGHTINGALE HEALTH EO on December 24, 2024 and sell it today you would earn a total of  74.00  from holding NIGHTINGALE HEALTH EO or generate 27.51% return on investment over 90 days.

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

JetBlue Airways Corp  vs.  NIGHTINGALE HEALTH EO

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.

NIGHTINGALE HEALTH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NIGHTINGALE HEALTH EO are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, NIGHTINGALE HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JetBlue Airways and NIGHTINGALE HEALTH

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

The idea behind JetBlue Airways Corp and NIGHTINGALE HEALTH EO 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.