Correlation Between Frontier Group and 126408HH9

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

Diversification Opportunities for Frontier Group and 126408HH9

Frontier126408HH9Diversified AwayFrontier126408HH9Diversified Away100%
0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Frontier and 126408HH9 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Group Holdings 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 Frontier Group 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 Frontier Group Holdings 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 Frontier Group i.e., Frontier Group and 126408HH9 go up and down completely randomly.

Pair Corralation between Frontier Group and 126408HH9

Given the investment horizon of 90 days Frontier Group Holdings is expected to generate 19.76 times more return on investment than 126408HH9. However, Frontier Group is 19.76 times more volatile than CSX P 325. It trades about 0.18 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  560.00  in Frontier Group Holdings on November 22, 2024 and sell it today you would earn a total of  312.00  from holding Frontier Group Holdings or generate 55.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.33%
ValuesDaily Returns

Frontier Group Holdings  vs.  CSX P 325

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020304050
JavaScript chart by amCharts 3.21.15ULCC 126408HH9
       Timeline  
Frontier Group Holdings 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Frontier Group Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Frontier Group exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb678910
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

Frontier Group and 126408HH9 Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.65-11.72-7.79-3.860.034.018.1712.3216.4720.62 1234567
JavaScript chart by amCharts 3.21.15ULCC 126408HH9
       Returns  

Pair Trading with Frontier Group and 126408HH9

The main advantage of trading using opposite Frontier Group and 126408HH9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Group 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 Frontier Group Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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