This module allows you to analyze existing cross correlation between American Airlines Group and Chevron Corporation. You can compare the effects of market volatilities on American Airlines and Chevron 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 Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Chevron.
|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 weak 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.
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
American Airlines and Chevron Volatility Contrast
Predicted Return Density
American Airlines Group Inc vs. Chevron Corp.
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Chevron. In addition to that, American Airlines is 1.88 times more volatile than Chevron Corporation. It trades about -0.19 of its total potential returns per unit of risk. Chevron Corporation is currently generating about -0.17 per unit of volatility. If you would invest 12,364 in Chevron Corporation on July 25, 2019 and sell it today you would lose (1,101) from holding Chevron Corporation or give up 8.9% of portfolio value over 30 days.
Pair Corralation between American Airlines and Chevron
|Time Period||2 Months [change]|
Diversification Opportunities for American Airlines and Chevron
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of American Airlines i.e. American Airlines and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.