Correlation Between JetBlue Airways and Peker Gayrimenkul

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

Diversification Opportunities for JetBlue Airways and Peker Gayrimenkul

0.4

Correlation Coefficient

JetBlue Airways  Peker Gayrimenkul

Very weak diversification

The 3 months correlation between JetBlue and Peker is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between JetBlue Airways and Peker Gayrimenkul

Given the investment horizon of 90 days JetBlue Airways is expected to generate 1.45 times less return on investment than Peker Gayrimenkul. In addition to that, JetBlue Airways is 1.0 times more volatile than Peker Gayrimenkul Yatirim. It trades about 0.14 of its total potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about 0.21 per unit of volatility. If you would invest  110.00  in Peker Gayrimenkul Yatirim on October 7, 2024 and sell it today you would earn a total of  41.00  from holding Peker Gayrimenkul Yatirim or generate 37.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.35%
Values	Daily Returns

JetBlue Airways Corp  vs.  Peker Gayrimenkul Yatirim

JetBlue Airways Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JetBlue Airways Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, JetBlue Airways may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JetBlue Airways and Peker Gayrimenkul

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

The idea behind JetBlue Airways Corp and Peker Gayrimenkul Yatirim 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.