Correlation Between Wheels Up and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Wheels Up and NYSE Composite 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 Wheels Up and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheels Up Experience and NYSE Composite, you can compare the effects of market volatilities on Wheels Up and NYSE Composite 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 Wheels Up with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheels Up and NYSE Composite.
Diversification Opportunities for Wheels Up and NYSE Composite
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wheels and NYSE is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Wheels Up Experience and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Wheels Up 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 Wheels Up Experience are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Wheels Up i.e., Wheels Up and NYSE Composite go up and down completely randomly.
Pair Corralation between Wheels Up and NYSE Composite
Allowing for the 90-day total investment horizon Wheels Up Experience is expected to under-perform the NYSE Composite. In addition to that, Wheels Up is 9.36 times more volatile than NYSE Composite. It trades about -0.01 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.05 per unit of volatility. If you would invest 1,441,425 in NYSE Composite on March 11, 2024 and sell it today you would earn a total of 357,138 from holding NYSE Composite or generate 24.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wheels Up Experience vs. NYSE Composite
Performance |
Timeline |
Wheels Up and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Wheels Up Experience
Pair trading matchups for Wheels Up
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Wheels Up and NYSE Composite
The main advantage of trading using opposite Wheels Up and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheels Up position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Wheels Up vs. Grupo Aeroportuario del | Wheels Up vs. Grupo Aeroportuario del | Wheels Up vs. Joby Aviation | Wheels Up vs. Blade Air Mobility |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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