Correlation Between JetBlue Airways and AGEDB Technology

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

Diversification Opportunities for JetBlue Airways and AGEDB Technology

0.63

Correlation Coefficient

JetBlue Airways  AGEDB Technology

Poor diversification

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

Pair Corralation between JetBlue Airways and AGEDB Technology

Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 0.44 times more return on investment than AGEDB Technology. However, JetBlue Airways Corp is 2.27 times less risky than AGEDB Technology. It trades about -0.07 of its potential returns per unit of risk. AGEDB Technology is currently generating about -0.1 per unit of risk. If you would invest  768.00  in JetBlue Airways Corp on December 21, 2024 and sell it today you would lose (202.00) from holding JetBlue Airways Corp or give up 26.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

JetBlue Airways Corp  vs.  AGEDB Technology

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.

AGEDB Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGEDB Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with JetBlue Airways and AGEDB Technology

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

The idea behind JetBlue Airways Corp and AGEDB Technology 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.