Correlation Analysis Between American Airlines and Best Buy

This module allows you to analyze existing cross correlation between American Airlines Group and Best Buy Co. You can compare the effects of market volatilities on American Airlines and Best Buy 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 Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Best Buy.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

American Airlines  
0

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.
Best Buy  
0

Risk-Adjusted Performance

Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions.

American Airlines and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines is expected to generate 1.73 times less return on investment than Best Buy. In addition to that, American Airlines is 1.64 times more volatile than Best Buy Co. It trades about 0.08 of its total potential returns per unit of risk. Best Buy Co is currently generating about 0.22 per unit of volatility. If you would invest  5,096  in Best Buy Co on January 18, 2019 and sell it today you would earn a total of  922.00  from holding Best Buy Co or generate 18.09% return on investment over 30 days.

Pair Corralation between American Airlines and Best Buy

0.78
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Best Buy

American Airlines Group Inc diversification synergy

Poor diversification

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

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Best Buy Co

Pair trading matchups for Best Buy

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