Correlation Between JetBlue Airways and YDUQ3F

Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and YDUQ3F 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 YDUQ3F 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 YDUQ3F, you can compare the effects of market volatilities on JetBlue Airways and YDUQ3F 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 YDUQ3F. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and YDUQ3F.

Diversification Opportunities for JetBlue Airways and YDUQ3F

-0.69

Correlation Coefficient

JetBlue Airways  YDUQ3F

Excellent diversification

The 3 months correlation between JetBlue and YDUQ3F is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and YDUQ3F in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YDUQ3F 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 YDUQ3F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YDUQ3F has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and YDUQ3F go up and down completely randomly.

Pair Corralation between JetBlue Airways and YDUQ3F

Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the YDUQ3F. In addition to that, JetBlue Airways is 1.35 times more volatile than YDUQ3F. It trades about -0.09 of its total potential returns per unit of risk. YDUQ3F is currently generating about 0.17 per unit of volatility. If you would invest  838.00  in YDUQ3F on December 23, 2024 and sell it today you would earn a total of  347.00  from holding YDUQ3F or generate 41.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

JetBlue Airways Corp  vs.  YDUQ3F

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.

YDUQ3F

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YDUQ3F are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, YDUQ3F sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JetBlue Airways and YDUQ3F

The main advantage of trading using opposite JetBlue Airways and YDUQ3F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, YDUQ3F 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 YDUQ3F will offset losses from the drop in YDUQ3F's long position.

The idea behind JetBlue Airways Corp and YDUQ3F 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.