Correlation Between Global Crossing and 126408HH9

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Can any of the company-specific risk be diversified away by investing in both Global Crossing and 126408HH9 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 Global Crossing and 126408HH9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and CSX P 325, you can compare the effects of market volatilities on Global Crossing and 126408HH9 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 Global Crossing with a short position of 126408HH9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and 126408HH9.

Diversification Opportunities for Global Crossing and 126408HH9

Global126408HH9Diversified AwayGlobal126408HH9Diversified Away100%
0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Global and 126408HH9 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and CSX P 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX P 325 and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with 126408HH9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX P 325 has no effect on the direction of Global Crossing i.e., Global Crossing and 126408HH9 go up and down completely randomly.

Pair Corralation between Global Crossing and 126408HH9

Assuming the 90 days horizon Global Crossing Airlines is expected to generate 19.08 times more return on investment than 126408HH9. However, Global Crossing is 19.08 times more volatile than CSX P 325. It trades about 0.19 of its potential returns per unit of risk. CSX P 325 is currently generating about 0.14 per unit of risk. If you would invest  50.00  in Global Crossing Airlines on November 22, 2024 and sell it today you would earn a total of  27.00  from holding Global Crossing Airlines or generate 54.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy96.67%
ValuesDaily Returns

Global Crossing Airlines  vs.  CSX P 325

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-30-20-100
JavaScript chart by amCharts 3.21.15JETMF 126408HH9
       Timeline  
Global Crossing Airlines 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Global Crossing Airlines are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Global Crossing reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.40.450.50.550.60.650.70.750.8
CSX P 325 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CSX P 325 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 126408HH9 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.1596.59797.59898.5

Global Crossing and 126408HH9 Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.81-10.34-6.88-3.410.03.627.4211.2315.0418.84 1234567
JavaScript chart by amCharts 3.21.15JETMF 126408HH9
       Returns  

Pair Trading with Global Crossing and 126408HH9

The main advantage of trading using opposite Global Crossing and 126408HH9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, 126408HH9 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 126408HH9 will offset losses from the drop in 126408HH9's long position.
The idea behind Global Crossing Airlines and CSX P 325 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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