This module allows you to analyze existing cross correlation between Apple and American Airlines Group. You can compare the effects of market volatilities on Apple and American Airlines 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 Apple with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and American Airlines.
|Horizon||30 Days Login to change|
Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.
Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.
Apple and American Airlines Volatility Contrast
Predicted Return Density
Apple Inc vs. American Airlines Group Inc
Given the investment horizon of 30 days, Apple is expected to generate 0.94 times more return on investment than American Airlines. However, Apple is 1.06 times less risky than American Airlines. It trades about -0.07 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.07 per unit of risk. If you would invest 18,847 in Apple on April 26, 2019 and sell it today you would lose (950.00) from holding Apple or give up 5.04% of portfolio value over 30 days.
Pair Corralation between Apple and American Airlines
|Time Period||2 Months [change]|
Diversification Opportunities for Apple and American Airlines
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Apple 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 Apple are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of Apple i.e. Apple and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.