Correlation Between Surf Air and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Surf Air and JetBlue Airways 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 Surf Air and JetBlue Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surf Air Mobility and JetBlue Airways Corp, you can compare the effects of market volatilities on Surf Air and JetBlue Airways 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 Surf Air with a short position of JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surf Air and JetBlue Airways.
Diversification Opportunities for Surf Air and JetBlue Airways
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Surf and JetBlue is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Surf Air Mobility and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp and Surf Air 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 Surf Air Mobility are associated (or correlated) with JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of Surf Air i.e., Surf Air and JetBlue Airways go up and down completely randomly.
Pair Corralation between Surf Air and JetBlue Airways
Given the investment horizon of 90 days Surf Air Mobility is expected to under-perform the JetBlue Airways. In addition to that, Surf Air is 2.11 times more volatile than JetBlue Airways Corp. It trades about -0.21 of its total potential returns per unit of risk. JetBlue Airways Corp is currently generating about -0.08 per unit of volatility. If you would invest 694.00 in JetBlue Airways Corp on March 16, 2024 and sell it today you would lose (142.00) from holding JetBlue Airways Corp or give up 20.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Surf Air Mobility vs. JetBlue Airways Corp
Performance |
Timeline |
Surf Air Mobility |
JetBlue Airways Corp |
Surf Air and JetBlue Airways Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Surf Air and JetBlue Airways
The main advantage of trading using opposite Surf Air and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surf Air position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.Surf Air vs. Aegon NV ADR | Surf Air vs. Steven Madden | Surf Air vs. The Hanover Insurance | Surf Air vs. Ralph Lauren Corp |
JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |