Correlation Between Alaska Air and Konoike Transport

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Can any of the company-specific risk be diversified away by investing in both Alaska Air and Konoike Transport 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 Alaska Air and Konoike Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Konoike Transport CoLtd, you can compare the effects of market volatilities on Alaska Air and Konoike Transport 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 Alaska Air with a short position of Konoike Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Konoike Transport.

Diversification Opportunities for Alaska Air and Konoike Transport

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Alaska and Konoike is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Konoike Transport CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konoike Transport CoLtd and Alaska 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 Alaska Air Group are associated (or correlated) with Konoike Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konoike Transport CoLtd has no effect on the direction of Alaska Air i.e., Alaska Air and Konoike Transport go up and down completely randomly.

Pair Corralation between Alaska Air and Konoike Transport

Considering the 90-day investment horizon Alaska Air Group is expected to under-perform the Konoike Transport. In addition to that, Alaska Air is 2.04 times more volatile than Konoike Transport CoLtd. It trades about -0.06 of its total potential returns per unit of risk. Konoike Transport CoLtd is currently generating about 0.17 per unit of volatility. If you would invest  1,763  in Konoike Transport CoLtd on September 13, 2025 and sell it today you would earn a total of  258.00  from holding Konoike Transport CoLtd or generate 14.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Alaska Air Group  vs.  Konoike Transport CoLtd

 Performance 
       Timeline  
Alaska Air Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Alaska Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Konoike Transport CoLtd 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Konoike Transport CoLtd are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward indicators, Konoike Transport reported solid returns over the last few months and may actually be approaching a breakup point.

Alaska Air and Konoike Transport Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alaska Air and Konoike Transport

The main advantage of trading using opposite Alaska Air and Konoike Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Konoike Transport 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 Konoike Transport will offset losses from the drop in Konoike Transport's long position.
The idea behind Alaska Air Group and Konoike Transport CoLtd 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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