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
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.
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
American Airlines Group Inc vs. Ford Motor Company
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
|Time Period||2 Months [change]|
Diversification Opportunities for American Airlines and Ford Motor
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.