Correlation Between JetBlue Airways and Enbridge Srs

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

Diversification Opportunities for JetBlue Airways and Enbridge Srs

0.01

Correlation Coefficient

JetBlue Airways  Enbridge Srs

Significant diversification

The 3 months correlation between JetBlue and Enbridge is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Enbridge Srs R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Srs R 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 Enbridge Srs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Srs R has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Enbridge Srs go up and down completely randomly.

Pair Corralation between JetBlue Airways and Enbridge Srs

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Enbridge Srs. In addition to that, JetBlue Airways is 12.82 times more volatile than Enbridge Srs R. It trades about -0.09 of its total potential returns per unit of risk. Enbridge Srs R is currently generating about 0.1 per unit of volatility. If you would invest  2,056  in Enbridge Srs R on December 24, 2024 and sell it today you would earn a total of  46.00  from holding Enbridge Srs R or generate 2.24% return on investment over 90 days.

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

JetBlue Airways Corp  vs.  Enbridge Srs R

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.

Enbridge Srs R

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Enbridge Srs R are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Enbridge Srs is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JetBlue Airways and Enbridge Srs

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

The idea behind JetBlue Airways Corp and Enbridge Srs R 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.