Correlation Between JetBlue Airways and Advisors Inner

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

Diversification Opportunities for JetBlue Airways and Advisors Inner

-0.1

Correlation Coefficient

JetBlue Airways  Advisors Inner

Good diversification

The 3 months correlation between JetBlue and Advisors is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and The Advisors Inner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisors Inner 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 Advisors Inner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisors Inner has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Advisors Inner go up and down completely randomly.

Pair Corralation between JetBlue Airways and Advisors Inner

Given the investment horizon of 90 days JetBlue Airways is expected to generate 735.67 times less return on investment than Advisors Inner. But when comparing it to its historical volatility, JetBlue Airways Corp is 58.43 times less risky than Advisors Inner. It trades about 0.02 of its potential returns per unit of risk. The Advisors Inner is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  0.00  in The Advisors Inner on October 23, 2024 and sell it today you would earn a total of  2,560  from holding The Advisors Inner or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.04%
Values	Daily Returns

JetBlue Airways Corp  vs.  The Advisors Inner

JetBlue Airways Corp

Risk-Adjusted Performance

3 of 100

Insignificant

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.

Advisors Inner

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Advisors Inner are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Advisors Inner showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JetBlue Airways and Advisors Inner

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

The idea behind JetBlue Airways Corp and The Advisors Inner 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..