Pair Correlation Between American Airlines and Hawaiian Holdings

This module allows you to analyze existing cross correlation between American Airlines Group Inc and Hawaiian Holdings Inc. You can compare the effects of market volatilities on American Airlines and Hawaiian Holdings 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 Hawaiian Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Hawaiian Holdings.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 American Airlines Group Inc  vs   Hawaiian Holdings Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines is expected to generate 1.06 times less return on investment than Hawaiian Holdings. But when comparing it to its historical volatility, American Airlines Group Inc is 1.15 times less risky than Hawaiian Holdings. It trades about 0.26 of its potential returns per unit of risk. Hawaiian Holdings Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  3,770  in Hawaiian Holdings Inc on September 22, 2017 and sell it today you would earn a total of  390  from holding Hawaiian Holdings Inc or generate 10.34% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between American Airlines and Hawaiian Holdings
0.74

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

American Airlines Group

  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.

Hawaiian Holdings Inc

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hawaiian Holdings Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.