Correlation Between Southwest Airlines and Abrdn Property
Can any of the company-specific risk be diversified away by investing in both Southwest Airlines and Abrdn Property 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 Southwest Airlines and Abrdn Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southwest Airlines Co and abrdn Property Income, you can compare the effects of market volatilities on Southwest Airlines and Abrdn Property 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 Southwest Airlines with a short position of Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Airlines and Abrdn Property.
Diversification Opportunities for Southwest Airlines and Abrdn Property
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southwest and Abrdn is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Airlines Co and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income and Southwest 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 Southwest Airlines Co are associated (or correlated) with Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Southwest Airlines i.e., Southwest Airlines and Abrdn Property go up and down completely randomly.
Pair Corralation between Southwest Airlines and Abrdn Property
Assuming the 90 days trading horizon Southwest Airlines Co is expected to generate 0.52 times more return on investment than Abrdn Property. However, Southwest Airlines Co is 1.91 times less risky than Abrdn Property. It trades about 0.02 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.03 per unit of risk. If you would invest 3,450 in Southwest Airlines Co on September 1, 2025 and sell it today you would earn a total of 74.00 from holding Southwest Airlines Co or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Southwest Airlines Co vs. abrdn Property Income
Performance |
| Timeline |
| Southwest Airlines |
| abrdn Property Income |
Southwest Airlines and Abrdn Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Airlines and Abrdn Property
The main advantage of trading using opposite Southwest Airlines and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Airlines position performs unexpectedly, Abrdn Property 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 Abrdn Property will offset losses from the drop in Abrdn Property's long position.| Southwest Airlines vs. Rightmove PLC | Southwest Airlines vs. VeriSign | Southwest Airlines vs. Bioventix | Southwest Airlines vs. Sure Ventures PLC |
| Abrdn Property vs. British American Tobacco | Abrdn Property vs. OneSavings Bank PLC | Abrdn Property vs. Evolution Gaming Group | Abrdn Property vs. Southwest Airlines Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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