Correlation Between Avianca Holdings and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Avianca Holdings and Alaska Air 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 Avianca Holdings and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avianca Holdings SA and Alaska Air Group, you can compare the effects of market volatilities on Avianca Holdings and Alaska Air 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 Avianca Holdings with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avianca Holdings and Alaska Air.
Diversification Opportunities for Avianca Holdings and Alaska Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avianca and Alaska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avianca Holdings SA and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and Avianca Holdings 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 Avianca Holdings SA are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Avianca Holdings i.e., Avianca Holdings and Alaska Air go up and down completely randomly.
Pair Corralation between Avianca Holdings and Alaska Air
If you would invest 3,987 in Alaska Air Group on January 26, 2024 and sell it today you would earn a total of 436.00 from holding Alaska Air Group or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Avianca Holdings SA vs. Alaska Air Group
Performance |
| Timeline |
| Avianca Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alaska Air Group |
Avianca Holdings and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avianca Holdings and Alaska Air
The main advantage of trading using opposite Avianca Holdings and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avianca Holdings position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| Avianca Holdings vs. ScanSource | Avianca Holdings vs. Space Communication | Avianca Holdings vs. Asure Software | Avianca Holdings vs. Dave Busters Entertainment |
| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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