Correlation Between JetBlue Airways and Analog Devices,

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

Diversification Opportunities for JetBlue Airways and Analog Devices,

0.32

Correlation Coefficient

JetBlue Airways  Analog Devices,

Weak diversification

The 3 months correlation between JetBlue and Analog is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Analog Devices, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices, 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 Analog Devices,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices, has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Analog Devices, go up and down completely randomly.

Pair Corralation between JetBlue Airways and Analog Devices,

Given the investment horizon of 90 days JetBlue Airways is expected to generate 1.72 times less return on investment than Analog Devices,. In addition to that, JetBlue Airways is 2.38 times more volatile than Analog Devices,. It trades about 0.02 of its total potential returns per unit of risk. Analog Devices, is currently generating about 0.06 per unit of volatility. If you would invest  42,700  in Analog Devices, on October 23, 2024 and sell it today you would earn a total of  22,673  from holding Analog Devices, or generate 53.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.19%
Values	Daily Returns

JetBlue Airways Corp  vs.  Analog Devices,

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.

Analog Devices,

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Analog Devices, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Analog Devices, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JetBlue Airways and Analog Devices,

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

The idea behind JetBlue Airways Corp and Analog Devices, 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 Global Correlations module to find global opportunities by holding instruments from different markets.