Alaska Air Correlations

ALK Stock  USD 40.27  0.74  1.87%   
The current 90-days correlation between Alaska Air Group and Merit Medical Systems is 0.33 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alaska Air moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alaska Air Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Alaska Air Correlation With Market

Very weak diversification

The correlation between Alaska Air Group and DJI is 0.41 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and DJI in the same portfolio, assuming nothing else is changed.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alaska Air Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.

Moving together with Alaska Stock

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  0.79VZ Verizon CommunicationsPairCorr
  0.74BA BoeingPairCorr
  0.85T ATT IncPairCorr
  0.86HD Home DepotPairCorr

Moving against Alaska Stock

  0.93IBM International BusinessPairCorr
  0.88INTC Intel Aggressive PushPairCorr
  0.86PTAIY Astra International TbkPairCorr
  0.79GE GE AerospacePairCorr
  0.77BKRKF PT Bank RakyatPairCorr
  0.76JNJ Johnson JohnsonPairCorr
  0.73AA Alcoa CorpPairCorr
  0.71AXP American ExpressPairCorr
  0.62MMM 3M CompanyPairCorr
  0.61MRK Merck Company Aggressive PushPairCorr
  0.59KO Coca Cola Aggressive PushPairCorr
  0.51TLKMF Telkom Indonesia TbkPairCorr
  0.51BAC Bank of AmericaPairCorr
  0.47TLK Telkom Indonesia TbkPairCorr
  0.47EC Ecopetrol SA ADRPairCorr
  0.41WMT WalmartPairCorr

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

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AXRXONCI
AXRXKVMD
MMSITLIS
ONCITMUSI
CRRVFTMUSI
  

High negative correlations

AXRXWIRX
KVMDWIRX
WIRXONCI
MMSITMUSI
TLISTMUSI
AXRXCRRVF

Risk-Adjusted Indicators

There is a big difference between Alaska Stock performing well and Alaska Air Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Alaska Air's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.