Correlation Analysis Between American Airlines and International Business

This module allows you to analyze existing cross correlation between American Airlines Group and International Business Machines Corporation. You can compare the effects of market volatilities on American Airlines and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and International Business.
Horizon     30 Days    Login   to change
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Comparative Performance

American Airlines  
9

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.
International Business  
21

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.

American Airlines and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines is expected to generate 1.31 times less return on investment than International Business. In addition to that, American Airlines is 1.7 times more volatile than International Business Machines Corporation. It trades about 0.14 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.32 per unit of volatility. If you would invest  10,757  in International Business Machines Corporation on January 23, 2019 and sell it today you would earn a total of  3,122  from holding International Business Machines Corporation or generate 29.02% return on investment over 30 days.

Pair Corralation between American Airlines and International Business

0.89
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.62%
ValuesDaily Returns

Diversification Opportunities for American Airlines and International Business

American Airlines Group Inc diversification synergy

Very poor diversification

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

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See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.


 
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