Correlation Between Clear Secure and Wheels Up

Can any of the company-specific risk be diversified away by investing in both Clear Secure and Wheels Up 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 Clear Secure and Wheels Up into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Clear Secure and Wheels Up Experience, you can compare the effects of market volatilities on Clear Secure and Wheels Up 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 Clear Secure with a short position of Wheels Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Secure and Wheels Up.

Diversification Opportunities for Clear Secure and Wheels Up

-0.06

Correlation Coefficient

Clear Secure  Wheels Up

Good diversification

The 3 months correlation between Clear and Wheels is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Wheels Up Experience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheels Up Experience and Clear Secure 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 Clear Secure are associated (or correlated) with Wheels Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheels Up Experience has no effect on the direction of Clear Secure i.e., Clear Secure and Wheels Up go up and down completely randomly.

Pair Corralation between Clear Secure and Wheels Up

Considering the 90-day investment horizon Clear Secure is expected to generate 0.37 times more return on investment than Wheels Up. However, Clear Secure is 2.72 times less risky than Wheels Up. It trades about 0.1 of its potential returns per unit of risk. Wheels Up Experience is currently generating about -0.01 per unit of risk. If you would invest  2,562  in Clear Secure on September 19, 2024 and sell it today you would earn a total of  105.00  from holding Clear Secure or generate 4.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Clear Secure  vs.  Wheels Up Experience

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clear Secure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Wheels Up Experience

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wheels Up Experience has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Clear Secure and Wheels Up

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

The idea behind Clear Secure and Wheels Up Experience 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..