Correlation Between JetBlue Airways and Akamai Technologies,

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

Diversification Opportunities for JetBlue Airways and Akamai Technologies,

0.21

Correlation Coefficient

JetBlue Airways  Akamai Technologies,

Modest diversification

The 3 months correlation between JetBlue and Akamai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Akamai Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akamai Technologies, 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 Akamai Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akamai Technologies, has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Akamai Technologies, go up and down completely randomly.

Pair Corralation between JetBlue Airways and Akamai Technologies,

Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 1.53 times more return on investment than Akamai Technologies,. However, JetBlue Airways is 1.53 times more volatile than Akamai Technologies,. It trades about 0.0 of its potential returns per unit of risk. Akamai Technologies, is currently generating about -0.26 per unit of risk. If you would invest  768.00  in JetBlue Airways Corp on October 22, 2024 and sell it today you would lose (4.00) from holding JetBlue Airways Corp or give up 0.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.44%
Values	Daily Returns

JetBlue Airways Corp  vs.  Akamai Technologies,

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 unsteady essential indicators, JetBlue Airways may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Akamai Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akamai Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals 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 Akamai Technologies,

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

The idea behind JetBlue Airways Corp and Akamai Technologies, 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..