Correlation Between JetBlue Airways and NexPrise
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and NexPrise 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 NexPrise 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 NexPrise, you can compare the effects of market volatilities on JetBlue Airways and NexPrise 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 NexPrise. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and NexPrise.
Diversification Opportunities for JetBlue Airways and NexPrise
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JetBlue and NexPrise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and NexPrise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPrise 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 NexPrise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPrise has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and NexPrise go up and down completely randomly.
Pair Corralation between JetBlue Airways and NexPrise
If you would invest 650.00 in JetBlue Airways Corp on September 24, 2024 and sell it today you would earn a total of 94.00 from holding JetBlue Airways Corp or generate 14.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.2% |
Values | Daily Returns |
JetBlue Airways Corp vs. NexPrise
Performance |
Timeline |
JetBlue Airways Corp |
NexPrise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JetBlue Airways and NexPrise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JetBlue Airways and NexPrise
The main advantage of trading using opposite JetBlue Airways and NexPrise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, NexPrise 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 NexPrise will offset losses from the drop in NexPrise'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 |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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