Correlation Analysis Between American Airlines and Ford Motor

This module allows you to analyze existing cross correlation between American Airlines Group and Ford Motor Company. You can compare the effects of market volatilities on American Airlines and Ford Motor 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 Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Ford Motor.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

American Airlines  
1

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Ford Motor  
0

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions.

American Airlines and Ford Motor Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Ford Motor Company

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to generate 1.33 times more return on investment than Ford Motor. However, American Airlines is 1.33 times more volatile than Ford Motor Company. It trades about 0.02 of its potential returns per unit of risk. Ford Motor Company is currently generating about 0.01 per unit of risk. If you would invest  3,204  in American Airlines Group on November 18, 2018 and sell it today you would earn a total of  0.00  from holding American Airlines Group or generate 0.0% return on investment over 30 days.

Pair Corralation between American Airlines and Ford Motor

0.79
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Ford Motor

American Airlines Group Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of American Airlines i.e. American Airlines and Ford Motor go up and down completely randomly.

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