Asset Comparison and Correlation

Given investment horizon of 30 days, NYSE is expected to under-perform the Alaska. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.58 times less risky than Alaska. The index trades about -0.32 of its potential returns per unit of risk. The Alaska Air Group Inc. is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 3,430 in Alaska Air Group Inc. on April 24, 2012 and sell it today you would lose (207.00) from holding Alaska Air Group Inc. or give up 6.03% of portfolio value over 30 days.