Correlation Between United Airlines and AngioSoma

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

By analyzing existing cross correlation between United Airlines Holdings and AngioSoma, you can compare the effects of market volatilities on United Airlines and AngioSoma 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 United Airlines with a short position of AngioSoma. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and AngioSoma.

Diversification Opportunities for United Airlines and AngioSoma

-0.79

Correlation Coefficient

United Airlines  AngioSoma

Pay attention - limited upside

The 3 months correlation between United and AngioSoma is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and AngioSoma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioSoma and United Airlines 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 United Airlines Holdings are associated (or correlated) with AngioSoma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioSoma has no effect on the direction of United Airlines i.e., United Airlines and AngioSoma go up and down completely randomly.

Pair Corralation between United Airlines and AngioSoma

Considering the 90-day investment horizon United Airlines Holdings is expected to generate 0.19 times more return on investment than AngioSoma. However, United Airlines Holdings is 5.21 times less risky than AngioSoma. It trades about 0.09 of its potential returns per unit of risk. AngioSoma is currently generating about 0.01 per unit of risk. If you would invest  3,820  in United Airlines Holdings on September 14, 2024 and sell it today you would earn a total of  6,076  from holding United Airlines Holdings or generate 159.06% return on investment over 90 days.

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

United Airlines Holdings  vs.  AngioSoma

United Airlines Holdings

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in United Airlines Holdings are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, United Airlines disclosed solid returns over the last few months and may actually be approaching a breakup point.

AngioSoma

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AngioSoma are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, AngioSoma exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United Airlines and AngioSoma

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

The idea behind United Airlines Holdings and AngioSoma 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 CEOs Directory module to screen CEOs from public companies around the world.