Q8 Q16

Using the data in the following table, , what is the covariance between the stocks of Alaska Air and Southwest Airlines? The covariance between the stocks of Alaska Air and Southwest Airlines is (Round to three decimal places.) Historical Annual Volatilities and Correlations for Selected Stocks (based on monthly returns, 1996-2017) \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & Microsoft & HP & AlaskaAir & SouthwestAirlines & FordMotor & Kellogg & GeneralMills \\ \hline Volatility (Standard Deviation) & 0.32 & 0.36 & 0.36 & 0.31 & 0.47 & 0.19 & 0.17 \\ \hline \multicolumn{8}{|l|}{ Correlation with } \\ \hline Microsoft & 1.00 & 0.40 & 0.18 & 0.22 & 0.27 & 0.04 & 0.10 \\ \hline HP & 0.40 & 1.00 & 0.27 & 0.34 & 0.27 & 0.10 & 0.06 \\ \hline Alaska Air & 0.18 & 0.27 & 1.00 & 0.40 & 0.15 & 0.15 & 0.20 \\ \hline Southwest Airlines & 0.22 & 0.34 & 0.40 & 1.00 & 0.30 & 0.15 & 0.21 \\ \hline Ford Motor & 0.27 & 0.27 & 0.15 & 0.30 & 1.00 & 0.17 & 0.08 \\ \hline Kellogg & 0.04 & 0.10 & 0.15 & 0.15 & 0.17 & 1.00 & 0.55 \\ \hline General Mills & 0.10 & 0.06 & 0.20 & 0.21 & 0.08 & 0.55 & 1.00 \\ \hline \end{tabular}