Correlation Between JetBlue Airways and CSX
Can any of the company-specific risk be diversified away by investing in both JetBlue Airways and CSX 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 JetBlue Airways and CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JetBlue Airways Corp and CSX Corporation, you can compare the effects of market volatilities on JetBlue Airways and CSX 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 JetBlue Airways with a short position of CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of JetBlue Airways and CSX.
Diversification Opportunities for JetBlue Airways and CSX
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JetBlue and CSX is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JetBlue Airways Corp and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and JetBlue Airways 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 JetBlue Airways Corp are associated (or correlated) with CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of JetBlue Airways i.e., JetBlue Airways and CSX go up and down completely randomly.
Pair Corralation between JetBlue Airways and CSX
Given the investment horizon of 90 days JetBlue Airways Corp is expected to under-perform the CSX. In addition to that, JetBlue Airways is 3.33 times more volatile than CSX Corporation. It trades about -0.08 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.15 per unit of volatility. If you would invest 3,108 in CSX Corporation on March 19, 2025 and sell it today you would earn a total of 104.00 from holding CSX Corporation or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JetBlue Airways Corp vs. CSX Corp.
Performance |
| Timeline |
| JetBlue Airways Corp |
| CSX Corporation |
JetBlue Airways and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JetBlue Airways and CSX
The main advantage of trading using opposite JetBlue Airways and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JetBlue Airways position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines Group |
| CSX vs. Union Pacific | CSX vs. Canadian National Railway | CSX vs. Canadian Pacific Railway | CSX vs. Westinghouse Air Brake |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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