Correlation Analysis Between Sprint and American Airlines

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

Sprint  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Sprint reported solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

Sprint and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Sprint Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 2.07 times more return on investment than American Airlines. However, Sprint is 2.07 times more volatile than American Airlines Group. It trades about 0.11 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.05 per unit of risk. If you would invest  625.00  in Sprint Corporation on April 21, 2019 and sell it today you would earn a total of  93.00  from holding Sprint Corporation or generate 14.88% return on investment over 30 days.

Pair Corralation between Sprint and American Airlines

-0.64
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and American Airlines

Sprint Corp. diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sprint 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 Sprint 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 Sprint 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 Sprint i.e. Sprint and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.


 
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