Correlation Between JetBlue Airways and Elbit Imaging

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

Diversification Opportunities for JetBlue Airways and Elbit Imaging

0.0

Correlation Coefficient

JetBlue Airways  Elbit Imaging

Pay attention - limited upside

The 3 months correlation between JetBlue and Elbit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging 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 Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Elbit Imaging go up and down completely randomly.

Pair Corralation between JetBlue Airways and Elbit Imaging

If you would invest (100.00) in Elbit Imaging on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Elbit Imaging or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JetBlue Airways Corp  vs.  Elbit Imaging

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.

Elbit Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elbit Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Elbit Imaging is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JetBlue Airways and Elbit Imaging

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

The idea behind JetBlue Airways Corp and Elbit Imaging 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.