Correlation Between JetBlue Airways and Neiman Large

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

Diversification Opportunities for JetBlue Airways and Neiman Large

-0.36

Correlation Coefficient

JetBlue Airways  Neiman Large

Very good diversification

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

Pair Corralation between JetBlue Airways and Neiman Large

Given the investment horizon of 90 days JetBlue Airways Corp is expected to generate 6.75 times more return on investment than Neiman Large. However, JetBlue Airways is 6.75 times more volatile than Neiman Large Cap. It trades about 0.05 of its potential returns per unit of risk. Neiman Large Cap is currently generating about -0.01 per unit of risk. If you would invest  707.00  in JetBlue Airways Corp on October 8, 2024 and sell it today you would earn a total of  62.00  from holding JetBlue Airways Corp or generate 8.77% 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.  Neiman Large Cap

JetBlue Airways Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways Corp are ranked lower than 4 (%) 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.

Neiman Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neiman Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Neiman Large 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 Neiman Large

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

The idea behind JetBlue Airways Corp and Neiman Large Cap 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..