This module allows you to analyze existing cross correlation between American Airlines Group and Apple. You can compare the effects of market volatilities on American Airlines and Apple 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 American Airlines with a short position of Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Apple.
Considering 30-days investment horizon, American Airlines is expected to generate 4.06 times less return on investment than Apple. In addition to that, American Airlines is 1.28 times more volatile than Apple. It trades about 0.1 of its total potential returns per unit of risk. Apple is currently generating about 0.52 per unit of volatility. If you would invest 16,232 in Apple on April 27, 2018 and sell it today you would earn a total of 2,626 from holding Apple or generate 16.18% return on investment over 30 days.
Pair Corralation between American Airlines and Apple
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple and American Airlines 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 American Airlines Group are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple has no effect on the direction of American Airlines i.e. American Airlines and Apple go up and down completely randomly.
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