This module allows you to analyze existing cross correlation between American Airlines Group Inc and CVS Health Corporation. You can compare the effects of market volatilities on American Airlines and CVS Health 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 CVS Health. See also your portfolio center
. Please also check ongoing floating volatility patterns of American Airlines
and CVS Health
American Airlines Group Inc. vs CVS Health Corp.
Considering 30-days investment horizon, American Airlines Group Inc is expected to generate 1.23 times more return on investment than CVS Health. However, American Airlines is 1.23 times more volatile than CVS Health Corporation. It trades about 0.13 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.05 per unit of risk. If you would invest 4,677 in American Airlines Group Inc on May 24, 2017 and sell it today you would earn a total of 186.00 from holding American Airlines Group Inc or generate 3.98% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of American Airlines i.e. American Airlines and CVS Health 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 8 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.