Correlation Analysis Between Chevron and American Airlines

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

Comparative Performance

Chevron  
17

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
American Airlines  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.

Chevron and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron is expected to generate 1.14 times less return on investment than American Airlines. But when comparing it to its historical volatility, Chevron Corporation is 1.74 times less risky than American Airlines. It trades about 0.27 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,866  in American Airlines Group on January 24, 2019 and sell it today you would earn a total of  683.00  from holding American Airlines Group or generate 23.83% return on investment over 30 days.

Pair Corralation between Chevron and American Airlines

0.84
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and American Airlines

Chevron Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. 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 Chevron 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 Chevron Corporation 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 Chevron i.e. Chevron and American Airlines go up and down completely randomly.

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