Correlation Between JetBlue Airways and Marti Technologies

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

Diversification Opportunities for JetBlue Airways and Marti Technologies

0.36

Correlation Coefficient

JetBlue Airways  Marti Technologies

Weak diversification

The 3 months correlation between JetBlue and Marti is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Marti Technologies go up and down completely randomly.

Pair Corralation between JetBlue Airways and Marti Technologies

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Marti Technologies. In addition to that, JetBlue Airways is 1.39 times more volatile than Marti Technologies. It trades about -0.03 of its total potential returns per unit of risk. Marti Technologies is currently generating about 0.06 per unit of volatility. If you would invest  336.00  in Marti Technologies on December 2, 2024 and sell it today you would earn a total of  20.00  from holding Marti Technologies or generate 5.95% return on investment over 90 days.

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

JetBlue Airways Corp  vs.  Marti Technologies

JetBlue Airways Corp

Risk-Adjusted Performance

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 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Marti Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marti Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Marti Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JetBlue Airways and Marti Technologies

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

The idea behind JetBlue Airways Corp and Marti Technologies 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..