This module allows you to analyze existing cross correlation between American Airlines Group and Hawaiian Holdings. 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.
American Airlines Group Inc vs. Hawaiian Holdings Inc
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Hawaiian Holdings. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.57 times less risky than Hawaiian Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The Hawaiian Holdings is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,620 in Hawaiian Holdings on July 15, 2018 and sell it today you would earn a total of 580.00 from holding Hawaiian Holdings or generate 16.02% return on investment over 30 days.
Pair Corralation between American Airlines and Hawaiian Holdings
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 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 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 has no effect on the direction of American Airlines i.e. American Airlines and Hawaiian Holdings go up and down completely randomly.
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