Correlation Analysis Between International Business and American Airlines

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

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  
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 and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines Corporation is expected to generate 0.59 times more return on investment than American Airlines. However, International Business Machines Corporation is 1.7 times less risky than American Airlines. It trades about 0.32 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.14 per unit of risk. 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 International Business and American Airlines

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

Diversification Opportunities for International Business and American Airlines

International Business Machine diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e. International Business and American Airlines go up and down completely randomly.

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See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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