Correlation Between JetBlue Airways and Msif Emerging

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

Diversification Opportunities for JetBlue Airways and Msif Emerging

0.62

Correlation Coefficient

JetBlue Airways  Msif Emerging

Poor diversification

The 3 months correlation between JetBlue and Msif is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Msif Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Msif Emerging Markets 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 Msif Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Msif Emerging Markets has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Msif Emerging go up and down completely randomly.

Pair Corralation between JetBlue Airways and Msif Emerging

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Msif Emerging. In addition to that, JetBlue Airways is 4.96 times more volatile than Msif Emerging Markets. It trades about -0.07 of its total potential returns per unit of risk. Msif Emerging Markets is currently generating about -0.09 per unit of volatility. If you would invest  1,383  in Msif Emerging Markets on December 20, 2024 and sell it today you would lose (82.00) from holding Msif Emerging Markets or give up 5.93% of portfolio value over 90 days.

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

JetBlue Airways Corp  vs.  Msif Emerging Markets

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.

Msif Emerging Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days Msif Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Msif Emerging 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 Msif Emerging

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

The idea behind JetBlue Airways Corp and Msif Emerging Markets 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.