This module allows you to analyze existing cross correlation between American Airlines Group and Best Buy Co. 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.
|Horizon||30 Days Login to change|
Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
American Airlines and Best Buy Volatility Contrast
Predicted Return Density
American Airlines Group Inc vs. Best Buy Co Inc
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.21 times less risky than Best Buy. The stock trades about -0.19 of its potential returns per unit of risk. The Best Buy Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,747 in Best Buy Co on July 22, 2019 and sell it today you would earn a total of 18.00 from holding Best Buy Co or generate 0.27% return on investment over 30 days.
Pair Corralation between American Airlines and Best Buy
|Time Period||2 Months [change]|
Diversification Opportunities for American Airlines and Best Buy
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 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 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 has no effect on the direction of American Airlines i.e. American Airlines and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.