Correlation Between Mesa Air and JetAI

Can any of the company-specific risk be diversified away by investing in both Mesa Air and JetAI 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 Mesa Air and JetAI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mesa Air Group and JetAI Inc, you can compare the effects of market volatilities on Mesa Air and JetAI 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 Mesa Air with a short position of JetAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and JetAI.

Diversification Opportunities for Mesa Air and JetAI

-0.69

Correlation Coefficient

Mesa Air  JetAI

Excellent diversification

The 3 months correlation between Mesa and JetAI is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc and Mesa 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 Mesa Air Group are associated (or correlated) with JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of Mesa Air i.e., Mesa Air and JetAI go up and down completely randomly.

Pair Corralation between Mesa Air and JetAI

Given the investment horizon of 90 days Mesa Air Group is expected to generate 0.64 times more return on investment than JetAI. However, Mesa Air Group is 1.56 times less risky than JetAI. It trades about 0.06 of its potential returns per unit of risk. JetAI Inc is currently generating about -0.19 per unit of risk. If you would invest  1,935  in Mesa Air Group on September 5, 2025 and sell it today you would earn a total of  165.00  from holding Mesa Air Group or generate 8.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	92.06%
Values	Daily Returns

Mesa Air Group  vs.  JetAI Inc

Mesa Air Group

Risk-Adjusted Performance

Soft

Over the last 90 days Mesa Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat fragile basic indicators, Mesa Air may actually be approaching a critical reversion point that can send shares even higher in January 2026.

JetAI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days JetAI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Mesa Air and JetAI

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

The idea behind Mesa Air Group and JetAI Inc 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.