Correlation Analysis Between Alcoa and American Airlines

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

Alcoa  
00

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short term losses for the investors.
American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The prevalent stock price chaos, may contribute to medium term losses for the stakeholders.

Alcoa and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Alcoa Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to generate 1.27 times more return on investment than American Airlines. However, Alcoa is 1.27 times more volatile than American Airlines Group. It trades about -0.03 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  2,289  in Alcoa Corporation on November 12, 2019 and sell it today you would lose (163.00)  from holding Alcoa Corporation or give up 7.12% of portfolio value over 30 days.

Pair Corralation between Alcoa and American Airlines

0.7
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alcoa and American Airlines

Alcoa Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa 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 Alcoa 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 Alcoa 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 Alcoa i.e. Alcoa and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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