Correlation Between Wheels Up and Frontier Group
Can any of the company-specific risk be diversified away by investing in both Wheels Up and Frontier Group 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 Frontier Group 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 Frontier Group Holdings, you can compare the effects of market volatilities on Wheels Up and Frontier Group 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 Frontier Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheels Up and Frontier Group.
Diversification Opportunities for Wheels Up and Frontier Group
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wheels and Frontier is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wheels Up Experience and Frontier Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Group Holdings 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 Frontier Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Group Holdings has no effect on the direction of Wheels Up i.e., Wheels Up and Frontier Group go up and down completely randomly.
Pair Corralation between Wheels Up and Frontier Group
Allowing for the 90-day total investment horizon Wheels Up Experience is expected to under-perform the Frontier Group. In addition to that, Wheels Up is 1.67 times more volatile than Frontier Group Holdings. It trades about -0.05 of its total potential returns per unit of risk. Frontier Group Holdings is currently generating about -0.04 per unit of volatility. If you would invest 477.00 in Frontier Group Holdings on August 16, 2025 and sell it today you would lose (85.00) from holding Frontier Group Holdings or give up 17.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheels Up Experience vs. Frontier Group Holdings
Performance |
| Timeline |
| Wheels Up Experience |
| Frontier Group Holdings |
Wheels Up and Frontier Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheels Up and Frontier Group
The main advantage of trading using opposite Wheels Up and Frontier Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheels Up position performs unexpectedly, Frontier Group 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 Frontier Group will offset losses from the drop in Frontier Group's long position.| Wheels Up vs. Frontier Group Holdings | Wheels Up vs. Allegiant Travel | Wheels Up vs. Willis Lease Finance | Wheels Up vs. Volaris |
| Frontier Group vs. Volaris | Frontier Group vs. Wheels Up Experience | Frontier Group vs. Alta Equipment Group | Frontier Group vs. Willis Lease Finance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |