Correlation Analysis Between American Airlines and Apple

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.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in November 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
Apple  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.

American Airlines and Apple Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Apple Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Apple. In addition to that, American Airlines is 1.4 times more volatile than Apple. It trades about -0.1 of its total potential returns per unit of risk. Apple is currently generating about 0.13 per unit of volatility. If you would invest  20,488  in Apple on September 16, 2019 and sell it today you would earn a total of  2,949  from holding Apple or generate 14.39% return on investment over 30 days.

Pair Corralation between American Airlines and Apple

-0.24
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Apple

American Airlines Group Inc diversification synergy

Very good diversification

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.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.


 
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