Correlation Between Investor Education and American Airlines
Can any of the company-specific risk be diversified away by investing in both Investor Education and American Airlines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Investor Education and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FILTER and American Airlines Group, you can compare the effects of market volatilities on Investor Education 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 Investor Education with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor Education and American Airlines.
Diversification Opportunities for Investor Education and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investor and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FILTER and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Investor Education 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 FILTER 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 Investor Education i.e., Investor Education and American Airlines go up and down completely randomly.
Pair Corralation between Investor Education and American Airlines
If you would invest 1,332 in American Airlines Group on January 18, 2024 and sell it today you would lose (29.00) from holding American Airlines Group or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FILTER vs. American Airlines Group
Performance |
| Timeline |
| Investor Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Airlines |
Investor Education and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor Education and American Airlines
The main advantage of trading using opposite Investor Education and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor Education position performs unexpectedly, American Airlines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will offset losses from the drop in American Airlines' long position.| Investor Education vs. Microsoft | Investor Education vs. Apple Inc | Investor Education vs. NVIDIA | Investor Education vs. Alphabet Inc Class C |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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