Correlation Between American Airlines and Immune Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both American Airlines and Immune Pharmaceuticals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Airlines and Immune Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Airlines Group and Immune Pharmaceuticals, you can compare the effects of market volatilities on American Airlines and Immune Pharmaceuticals 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 Immune Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Immune Pharmaceuticals.
Diversification Opportunities for American Airlines and Immune Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Immune is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and Immune Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immune Pharmaceuticals 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 Immune Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immune Pharmaceuticals has no effect on the direction of American Airlines i.e., American Airlines and Immune Pharmaceuticals go up and down completely randomly.
Pair Corralation between American Airlines and Immune Pharmaceuticals
If you would invest (100.00) in Immune Pharmaceuticals on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Immune Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Airlines Group vs. Immune Pharmaceuticals
Performance |
| Timeline |
| American Airlines |
| Immune Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Airlines and Immune Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and Immune Pharmaceuticals
The main advantage of trading using opposite American Airlines and Immune Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, Immune Pharmaceuticals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Immune Pharmaceuticals will offset losses from the drop in Immune Pharmaceuticals' long position.| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
| Immune Pharmaceuticals vs. Palomar Holdings | Immune Pharmaceuticals vs. Advanced Micro Devices | Immune Pharmaceuticals vs. ASML Holding NV | Immune Pharmaceuticals vs. Micron Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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