This module allows you to analyze existing cross correlation between American Airlines Group Inc 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
American Airlines Group Inc vs Chevron Corp.
Considering 30-days investment horizon, American Airlines Group Inc is expected to under-perform the Chevron. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group Inc is 1.06 times less risky than Chevron. The stock trades about -0.18 of its potential returns per unit of risk. The Chevron Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,472 in Chevron Corporation on October 22, 2017 and sell it today you would earn a total of 0.00 from holding Chevron Corporation or generate 0.0% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak 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 Inc 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.
Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.