Correlation Between American Airlines and Globus Medical,

Can any of the company-specific risk be diversified away by investing in both American Airlines and Globus Medical, 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 American Airlines and Globus Medical, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Airlines Group and Globus Medical,, you can compare the effects of market volatilities on American Airlines and Globus Medical, 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 American Airlines with a short position of Globus Medical,. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Globus Medical,.

Diversification Opportunities for American Airlines and Globus Medical,

-0.35

Correlation Coefficient

American Airlines  Globus Medical,

Very good diversification

The 3 months correlation between American and Globus is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and Globus Medical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical, and American Airlines 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 American Airlines Group are associated (or correlated) with Globus Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical, has no effect on the direction of American Airlines i.e., American Airlines and Globus Medical, go up and down completely randomly.

Pair Corralation between American Airlines and Globus Medical,

Assuming the 90 days trading horizon American Airlines Group is expected to generate 0.89 times more return on investment than Globus Medical,. However, American Airlines Group is 1.13 times less risky than Globus Medical,. It trades about 0.03 of its potential returns per unit of risk. Globus Medical, is currently generating about -0.13 per unit of risk. If you would invest  6,066  in American Airlines Group on May 7, 2025 and sell it today you would earn a total of  112.00  from holding American Airlines Group or generate 1.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

American Airlines Group  vs.  Globus Medical,

American Airlines

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, American Airlines is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Globus Medical,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Globus Medical, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with American Airlines and Globus Medical,

The main advantage of trading using opposite American Airlines and Globus Medical, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, Globus Medical, 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 Globus Medical, will offset losses from the drop in Globus Medical,'s long position.

The idea behind American Airlines Group and Globus Medical, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.