Correlation Between JetBlue Airways and Foremost Lithium
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and Foremost Lithium 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 Foremost Lithium 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 Foremost Lithium Resource, you can compare the effects of market volatilities on JetBlue Airways and Foremost Lithium 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 Foremost Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and Foremost Lithium.
Diversification Opportunities for JetBlue Airways and Foremost Lithium
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JetBlue and Foremost is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Foremost Lithium Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foremost Lithium Resource 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 Foremost Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foremost Lithium Resource has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Foremost Lithium go up and down completely randomly.
Pair Corralation between JetBlue Airways and Foremost Lithium
Given the investment horizon of 90 days JetBlue Airways is expected to generate 10.92 times less return on investment than Foremost Lithium. But when comparing it to its historical volatility, JetBlue Airways Corp is 4.94 times less risky than Foremost Lithium. It trades about 0.04 of its potential returns per unit of risk. Foremost Lithium Resource is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Foremost Lithium Resource on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Foremost Lithium Resource or generate 6.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JetBlue Airways Corp vs. Foremost Lithium Resource
Performance |
Timeline |
JetBlue Airways Corp |
Foremost Lithium Resource |
JetBlue Airways and Foremost Lithium Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JetBlue Airways and Foremost Lithium
The main advantage of trading using opposite JetBlue Airways and Foremost Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, Foremost Lithium 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 Foremost Lithium will offset losses from the drop in Foremost Lithium's long position.JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines Group |
Foremost Lithium vs. Levi Strauss Co | Foremost Lithium vs. Kontoor Brands | Foremost Lithium vs. Jerash Holdings | Foremost Lithium vs. Triumph Apparel |
Check out your portfolio center.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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |