Correlation Analysis Between American Airlines and Sprint

This module allows you to analyze existing cross correlation between American Airlines Group and Sprint Corporation. You can compare the effects of market volatilities on American Airlines and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Sprint.
Horizon     30 Days    Login   to change
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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.
Sprint  
0

Risk-Adjusted Performance

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

American Airlines and Sprint Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Sprint Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to generate 1.46 times more return on investment than Sprint. However, American Airlines is 1.46 times more volatile than Sprint Corporation. It trades about 0.0 of its potential returns per unit of risk. Sprint Corporation is currently generating about -0.06 per unit of risk. If you would invest  3,328  in American Airlines Group on November 15, 2018 and sell it today you would lose (87.00)  from holding American Airlines Group or give up 2.61% of portfolio value over 30 days.

Pair Corralation between American Airlines and Sprint

0.2
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Sprint

American Airlines Group Inc diversification synergy

Modest diversification

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

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