Correlation Between Alaska Air and Compania Cervecerias

Can any of the company-specific risk be diversified away by investing in both Alaska Air and Compania Cervecerias 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 Compania Cervecerias 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 Compania Cervecerias Unidas, you can compare the effects of market volatilities on Alaska Air and Compania Cervecerias 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 Compania Cervecerias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Compania Cervecerias.

Diversification Opportunities for Alaska Air and Compania Cervecerias

-0.46

Correlation Coefficient

Alaska Air  Compania Cervecerias

Very good diversification

The 3 months correlation between Alaska and Compania is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Compania Cervecerias Unidas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Cervecerias 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 Compania Cervecerias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Cervecerias has no effect on the direction of Alaska Air i.e., Alaska Air and Compania Cervecerias go up and down completely randomly.

Pair Corralation between Alaska Air and Compania Cervecerias

Considering the 90-day investment horizon Alaska Air Group is expected to under-perform the Compania Cervecerias. In addition to that, Alaska Air is 1.91 times more volatile than Compania Cervecerias Unidas. It trades about -0.01 of its total potential returns per unit of risk. Compania Cervecerias Unidas is currently generating about 0.04 per unit of volatility. If you would invest  1,113  in Compania Cervecerias Unidas on September 11, 2025 and sell it today you would earn a total of  183.00  from holding Compania Cervecerias Unidas or generate 16.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alaska Air Group  vs.  Compania Cervecerias Unidas

Alaska Air Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Alaska Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Compania Cervecerias

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compania Cervecerias Unidas are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Compania Cervecerias may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Alaska Air and Compania Cervecerias

The main advantage of trading using opposite Alaska Air and Compania Cervecerias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Compania Cervecerias 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 Compania Cervecerias will offset losses from the drop in Compania Cervecerias' long position.

The idea behind Alaska Air Group and Compania Cervecerias Unidas 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.