This module allows you to analyze existing cross correlation between American Airlines Group Inc and Best Buy Co Inc. You can compare the effects of market volatilities on American Airlines and Best Buy 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 Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of American Airlines
and Best Buy
American Airlines Group Inc vs Best Buy Co Inc
Considering 30-days investment horizon, American Airlines Group Inc is expected to generate 1.44 times more return on investment than Best Buy. However, American Airlines is 1.44 times more volatile than Best Buy Co Inc. It trades about 0.43 of its potential returns per unit of risk. Best Buy Co Inc is currently generating about 0.42 per unit of risk. If you would invest 5,149 in American Airlines Group Inc on December 17, 2017 and sell it today you would earn a total of 734 from holding American Airlines Group Inc or generate 14.26% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy Co 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 Inc are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy Co has no effect on the direction of American Airlines i.e. American Airlines and Best Buy go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.