Correlation Between JetBlue Airways and Sahacogen Public

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

Diversification Opportunities for JetBlue Airways and Sahacogen Public

0.75

Correlation Coefficient

JetBlue Airways  Sahacogen Public

Poor diversification

The 3 months correlation between JetBlue and Sahacogen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and Sahacogen Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sahacogen Public 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 Sahacogen Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sahacogen Public has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and Sahacogen Public go up and down completely randomly.

Pair Corralation between JetBlue Airways and Sahacogen Public

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the Sahacogen Public. In addition to that, JetBlue Airways is 2.67 times more volatile than Sahacogen Public. It trades about -0.09 of its total potential returns per unit of risk. Sahacogen Public is currently generating about -0.15 per unit of volatility. If you would invest  346.00  in Sahacogen Public on December 24, 2024 and sell it today you would lose (58.00) from holding Sahacogen Public or give up 16.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

JetBlue Airways Corp  vs.  Sahacogen Public

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.

Sahacogen Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sahacogen Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with JetBlue Airways and Sahacogen Public

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

The idea behind JetBlue Airways Corp and Sahacogen Public 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.